Router is fine. I have 2 Playbooks a 16 and a 64. There is no problems with the 16. After the security wipe it downloaded the update fine. I have shut off wifi and just tried the bridge and the same thing happens. Each time (if I wait long enough) it times out. I have 2 laptops and 3 PC's on the network and everything is running fine. I'm not doing any beta stuff on this unit so no funky crap is happening. A few minutes ago everything was working fine then it craped out again.
I had same, started with security wipe, then a reload of the OS using desktop manager (turn off playbook, connect with dm running then update) then a full restore from last backup. I had to do the restore part twice before it 'took'.