Still not working
I click on restore and iTunes says it cannot find device even though it is showing on iTunes!!! Cannot use on TV and does not respond on iTunes, what do I do?
AppleTV 2
Welcome to the Apple Community.
If when you choose restore you get a message that the device cannot be found, download the file below
Apple TV Software Restore 5.1.1 (2nd generation)
Then hold down the option key while choosing restore and select the downloaded file when prompted.