This is getting reeeeediculous

i just bought an apple tv hooked, it all up, updated to 2.3 cuz it was still 2.2 out of box did custom sync to stream everything. while sitting on the couch playing with my new toy it all went to ****(well not **** but it is trying my patience). first i got wrong format error then my music was gone so i checked my computer and the apple tv was missing from devices. i looked all over google and some on here and cant find a real answer as to why this is happening. i rebooted everything unpluged restarted all that kinda stuff and the only thing that works is exiting itunes and restarting it but then it goes away a few minutes later and i gota restart itunes again wich means i cant stream anything EVER cuz it wont even last a whole song....i can start sycing but onlt like 25 or 30 songs at a time before restarting itunes. everything thing else youtube hd movies all that is great turned off firewall....i dont have anything techy like proxys or whatnot i am just a regular ole consumer got a router a computer (vista) and apple tv and i dont know what to do next.....shoould i just take it back before its too late or is there a real fix for this issue?
thanx

its about ten feet away....im not sure what the router is 2wire from att...i thik you are righ cuz when i use ethernet cable it never goes MIA...but the strange thing is that if it was the signal wouldnt it find it again ? it does not once its gone its gone unless i restart itunes

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