Stuck on Language Selection screen

My AppleTV started acting up. I did a factory restore and now cannot get past the language selection screen. The up and down arrows do not move the menu from English and pressing the play button does not select English and move to the next screen.

I have gone through various remote troubleshooting steps. Each click flashes the light. Unpairing and pairing works. Menu/- and Menu/+ work to reset or select video mode. The remote works properly with Front Row on my iMac. I have tried another remote with the same result.

I have powered off and waited for varying amounts of time, including overnight. Same result.

Any suggestions before I head to a Apple service center? It is still under warranty but outside the 3 month free phone support period.