I had been having intermittent issues with Apple TV on and off for some time with streaming from Netflix. This was especially true when ever someone else was surfing on the wifi network that my Apple TV was on. My old router was a Netgear RangeMax model WPN824 v3. Lately when checking download speeds there was hardly a day it would be above 1 MBPS. It seems having 3 iPhones, an iPad, a Roku, 3 computers, an Apple TV and an HP Wireless Printer all pinging it was too much.
I looked around and read a bunch of reviews and found that for under $100 a good Wireless router looked to be the Cisco / Linksys E2500 "Advanced Dual-Band N Router" And after getting it set up - WOW. Netflix never started videos so quickly and streamed so well. On my laptop which when I did Speed tests before switching I went from an average download speed of 0.6 mbps with the Netgear router up to 15 mbps with the e2500. This is with the same number of Wifi devices "connected". (Plugging my modem directly into my computer resulted in an average of 19 mbps on the downloads.)
One of the nice things on the E2500 is that it is dual band - so surfing the web while watching Netflix on Apple TV did not effect either - even when streaming from Youtube.
Additionally I noticed a nice speed bump in surfing on my iOS devices. As would be expected per the numbers above.
If you are having starting and stopping issues on your Apple TV with Netflix and updating to the lastest software on Apple TV did not fix your issue - it may be time for a new Router. The e2500 was $79 at Best Buy - I recommend calling before heading out, the store I went to only had one in stock. You can also find it on line for about $70.
Now for the Warning - if you have a Mac and you have updated to Lion - You will need to wait to upgrade. Setting up the e2500 requires a Max running OS X 10.5.x or 10.6.x - but I could not get it set up on my OS X 10.7 (Lion) Mac book Pro. I had to use my old mac book running Snow Leopard. I checked the site for Cisco/ Linksys and the setup software was last updated mid July - right before the release of Lion.
After the initial issues with getting it set up - I am now very happy with the performance of the router - not just for Apple TV and my iOS devices but for my Computer as well.