I'll try the ethernet cable tonight, I really dont see how it can be the internet though, and this is why, we used to have sky unlited broadband, with a wireless b/g router, download speed was at most 1MB/s
So we upgraded to sky's more expensive package for fibre optic broadband, which came with a wirless N router and our download speed is about 5MB/s now.
What I dont understand is why would i be able to stream from iplayer and then mirror that to my ATV lag free before on my worse internet connection but then when i upgrade and get faster download speeds its lags when i do airplay mirroring?
What Gav2k and I have been saying is that it's not your internet that's at fault - that's the connection from your house to the wider world, your Sky broadband. What we suspect is that it is your internal wireless network that is the culprit, it's a separate thing. If you are streaming content from the internet to your iMac, then it's using wireless bandwidth between the router and the computer. Similarly, when you then pass that content on to the ATV, you're using wireless bandwidth to get the stuff across.
So, getting content into the house might be quick, passing it around once it's there might be slow.