At this point I'm thinking, sweet, that was easy.
Try to load movie trailers. Fail.
Try to load YouTube. Fail.
Try to steam music using Home Sharing. Fail.
Try to download available update. Fail.
Try to restore device. Fail.
So, nothing Internet-related works. Steaming from iTunes on local wireless does not work. Mirroring from iPad 3, works a little, but very very laggy, will not stream photos or videos.
I have since proven that my network will stream music and video, using home sharing, between two Macs.
However will not stream from either Mac to Apple TV. (AppleTV gets IP address, using DHCP etc, seems to connect fine. AppleTV test network test works fine too!!)
There's quite a few discussion forums discussing similar issues. Has anyone here had same issues, and any ideas to resolve?
I thought about updating via USB, but I don't have the appropriate USB cable(!) Argh.