Wifi not working on Apple Tv2

PLEASE help. This is driving me nuts!
I have an apple tv (second generation) and this morning I noticed I had no internet connection.
I've been using the wireless capability on the device and it has worked fine until just now.
I haven't changed anything on the router or the device.
When I plug it in using an ethernet cable it works perfectly, but when I try to connect using wifi it either doesn't connect at all or it will connect for all of about 5 seconds and disconnect. It is NOT my router. I have an iphone 4s, laptop, and tablet which all connect perfectly. I tried using my neighboors wireless network, with his permission of course, and I'm having the same issue. The device simply will not connect to wireless internet. It sees the network just fine, but will not connect after the password is entered. Also, since the wireless is not connecting, airplay does not work either, rendering my Apple TV useless.
Since it stopped working all of a sudden, and nothing was changed, I am thinking it may be a hardware problem.
Any help would be greatly appreciated!

I'm not an expert but this happened to me to and I remember that Apple Support told me to simply unplug and replug and AppleTV, thus resetting it.  Worked for me!

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