Apple TV blinking, but not responding to remote

I've had my Apple tv for about 2 months now, and suddenly it has stopped responding to the remote....sort of. The apple tv will turn on when I push the play/pause button, but once it boots up to the main options page the remote no longer works. The cursor stays in the same place on the main options menu. The strange thing is that the apple tv blinks (white light) at me when I push buttons, as it usually does when it is functioning normally.

I've tried unpairing and repairing the remote, and while the apple tv flashes quite a bit after holding the buttons down, nothing happens on the screen! I've also tried the basics of unplugging the entire system and letting it reboot. Has anyone ever dealt with this situation?