TS2972 Apple TV is not connected to the network?

After installing the latest Apple TV firmware update 5.1.1 (5433), my Apple TV will not stream music from my iTunes over the wifi network. After 15 - 120 seconds of music, the streaming stops and I get the "Apple TV is not connected to the network" message. My iPhoto is still streaming pictures and I can go to Radio and stream content.
In the "About" screen. I have 4 out of 5 bars of signal, but the IP Address number and wi-fi network name drop out randomly. I have reset and restored several times to no avail. I have reset my router several times and powered down/restarted several times. The Genius Bar folks have no answers except purchase a new one.
The system has worked perfectly until the December update.
Any answers?

This will be due to a network issue, which can come at any time
Make sure DNS is set to auto (settings - general - network)
If on wifi try Ethernet
To see a status of the network go to istumbler, netstumbler or similar to get a report. Look for signal strength, noise, nearby networks

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