Currently Being ModeratedSep 3, 2012 3:59 PM (in response to sounddave)
I have been in the middle of the same problem for months.
I think the problem is with the software version that the older 40GB Apple TV's revert to after the factory restore. Mine reverted to version 1.0, and that is when the loop started happening. Since when did a factory restore become a factory paper weight creator!
I read somewhere that the Apple TV looks at an Apple server and the older software doesn't play well with the updated server causing it to keep rebooting. I'll try to find a link about this if I can find it again. I remember reading that it happened to a bunch of people with older Apple TV software on a particular day that Apple upgraded their server.
If you don't let your Apple TV connect to the internet, it will stop the infinite loop, but it also means you can't upgrade your software. I haven't tried it yet, but it also might be an issue with newer versions of iTunes.
I tested this by unplugging my router, and the Apple TV stopped looping.
I tried to fix this before without success, but I am really determined this time.
Currently Being ModeratedSep 3, 2012 8:34 PM (in response to livingstonl)
ok, I fixed it!!
I followed these directions from crhendo1 here...
The trick is to turn off all internet, then plug in the ethernet cable, then set the DNS settings 208.067.222.222 (acording to crhendo), then turn on the internet. I'm not even sure you would have to set the DNS address??
Then I was able to update to 3.0.2!!
Then I installed ATV Flash, so I am definitely back in business after many months. Thanks to crhendo1
Currently Being ModeratedJan 24, 2013 8:50 PM (in response to sounddave)
Hi, I had the same issue. I also had the problem that I share a house with two other guys - all of us have a ton of mac products and they weren't too keen on disconnecting everything.
The easiest way to get this to work is to connect it via ethernet, and after it starts the loop, disconnect the cable. Then press the menu button, Settings, then hover over to Update Software. Plug your cable back in, and then keep hitting the play button on your remote to begin the download. You'll get an error message saying "Can't connect" but when you go back to the menu immediately press the play button to try it again. If the system goes into the loop, disconnect the cable and try it again.
In my case, my room was very far from the house internet router, so did reverse tethering using my macbook pro to turn my laptop into an internet router. I went to Network Settings, Ethernet, Configure iPv4 manually. Set IP to 10.0.0.1 and Subnet to 255.255.255.0. Then from Settings go to Sharing, check the box for Internet Sharing and make sure the Ethernet box is checked. Now I was able to do the method above to update my ATV software but without physically being by the router.
Hope this helps!