Recently a friend asked me to help him troubleshoot an issue where his AppleTV would only play the first song, then freeze. I had to dig through my memory banks to remember how I fixed a similar issue I had a while back, where mine was crashing after 2-3 songs.
The Apple support technician was way off, asking about ports and all kind of other things. Poor chap confused the customer even more.
One thing I did back then when I had the issue was to disable the screen saver. That resolved my problem with the AppleTV freezing.
In our case, after investigating a few things, I realized that the firewall on him PC was on. Didn’t think to check that from the beginning since it was browsing through iTunes with no issue, and it would play the first song entirely before giving up.
Disabling the firewall on the PC resolved this issue. We’ve done various other tests, and now it all works ok.
Hope this helps others, I’ve found tons of threads with users complaining about this issue.