alasta:

KiwiNZ: My Apple TV was as stable as Uluru right up until the last update, now the network drops out all the time. I have to turn homeshare off an on or iTunes off and on, this also occurs during streaming which is somewhat tedious to the point I am considering replacing the unit with a WD Live. 

This sounds like a widely reported issue with iTunes 11 where iTunes will terminate home sharing when the Mac is due to go to sleep (based on the 'sleep after x minutes' setting in system preferences) even though iTunes prevents it from actually going to sleep at all. The temporary fix is to set the sleep setting to 'never'.

Back to the original problem, my experience is consistent with the suggestions that specialised Wifi features on Apple products seem to be hit and miss with third party routers. I used to have a lot of problems with wireless syncing when I was flatting and was forced to use whatever router was set up in the flat, but I bought the new Airport Express when I moved into my own place and have had relatively few problems in comparison.