@ All,
I had the same problems even with two updates before which was 5.1. and I went back to 5.02 not 5.2. I could not update for months, so I restored it several times to 5.02 and just waited, until recently I just tried to see if it was the same thing with the new update which was the 5.1.1. And it finally did work out. I even sent emails to some guy that asked for my Router and settings, which I gave, never got a reply from it, while others had. So I just waited and waited and then when the 5.1.1 came out, I updated that one and all was well. Finally after 3-4 months.
I had the same crap as Imagodoc, spinning, not activation, loosing connection and you name it with 5.1. Resetting modems, routers, Computers, IP pools, reinstallation, clear settings.... It was ****. It took me days to figure out that I was just wasting my time with it. So I just left it at some point.
5.1.1 does work for me. But I have not reset it yet, which could still mean it goes back to the same situation as I had before, because that is what I do, I reset the Apple TV before I update and then fill in the settings again and try to reconnect and activate. Now I just did the update over the installation itselves and it has been good until yesterday because it had lost it IP address on wireless and went to a 169.XXX.XXX.XXX adress. Do not know why it had done this. Normally this is when it can't find an suitable IP address on DHCP router IP address that is available. I have 100 DHCP addresses available. So I restarted it and Apple TV took the old IP address again that I had put in my router in the Mac address Table which was assigned to Apple TV. This I also do this to all my devices so they always take the same IP address from the DHCP because they are forced to do it. I don't like Dynamic DHCP because when it takes all different IP addresses from the pool sometimes other computers and devices will have a conflict if it takes a IP address from another device that you has not been used for longer than a day because the time of the IP address refreshment is set to 1 day. I always use 1 day because it keeps the address pool healthy in DHCP like that.
I have hardly problems with any other computer, laptops concerning that. But I have had now two major problems with iPad's 3 and Apple TV's which has caused me days and nights to get sorted and to restore. This is wearing me out that it takes days to recuperate from it. Which is very annoying because when I was working for Apple in the past, things just used to work. From the box to when you decided to discard it. Always working. Hardly any problems. But with the continual updates rammed out at blowing their nose at Apple all the time and a cough is just terrible. As far as I can see they are just alpha and beta updates instead of an official one that is universal applicable that works. The stupid ways of 5.0. 5.01. 5.02, 5.1, 5.1.1, is just rediculous and no need for. Small increments of changes does not make sense to me. Do immediately from 5.0 to 5.1.1. test it properly in all kinds of settings then release it. Make sure you cram it all in instead of small changes that makes hardware jittery and not functional. Which is the case nowadays.
But it is not uncommon with Apple alone, Microsoft is the worst offender with it. Their updates are abominable and farcical. Always because someone "who takes over your computer attacker updates" !!!! Make it proper fireproof then before you release it and they know very well that there are holes in it that huge trucks can go through it. Yet still publish it it. Does anyone remember Windows NT 4.0 !!!! Seven service packs !!!! Why ???
Organizations like Apple and Microsoft are only geared on selling and making fast money and no more directed on the customer individuality and grieves. When the grieves Peter out and finally start to work nice, they give you a new product and the whole merry go round happens again to the agrivation of the customer. Year in year out.
But I tell you what, if they carry on like this, I refuse to go to that shop anymore. I have enough of it myself. Thank you,