Strange Airplay Bug

I have a 2011 iMac and Macbook Air and can use airplay flawlessly with the iMac. But when the Air is connected to my network it disconnects my iMac from my ATV2.

Once it has accomplished that it starts turning on airplay by itself, for about 30 seconds. Then it disconnects for 30ish seconds, and starts the process all over again.

The icon never turns blue to look like its connected even when I see my Airs screen on the TV. And since it never shows its connected I cant turn it off.

Any advice one what to do would be appreciated.

One side note my Air just got stuck at the log in screen couldn't click anything but could move the mouse. I reset the PRAM and all is well but maybe its part of the problem.

 

I guess nobody else has experienced this. How does one report a bug to apple?