Hi GuardianANU,
It sounds like your Apple TV remote isn’t responding correctly. The suggestions in this document may be able to help you figure out what’s going on:
Troubleshooting the Apple Remote
http://support.apple.com/kb/HT1722
Use a digital camera to test your Apple Remote
A digital camera or DV camera with an LCD display can be used to see if your Apple Remote is emitting a signal. You can use the built-in iSight camera or FaceTime HD camera on your MacBook or iMac computer. Infrared beams are invisible to the human eye, but most digital camera and video cameras use Charged-Coupled Device (CCD) chips or image sensors that are sensitive to infrared light.
To use an iSight or digital camera to test your Apple Remote, follow these steps:
1.Turn on the camera so you see a live picture through the LCD. If you are using an iSight or FaceTime HD camera, turn it on by opening the video preview window of iChat.
2.Point your Apple Remote toward the lens of the camera.
3.Press and hold the Menu button on the remote while looking at the LCD or the video preview window.
▪If you see a faint blinking light coming from the Apple Remote on the LCD or the video preview window, then the remote is working properly. ▪If you don't see any blinking light on the LCD or the video preview window, replace the battery in your Apple Remote and then test it again with your computer (see this article for instructions).
If you've replaced the Apple Remote battery but still don't see a blinking light in the video preview window, contact Apple technical support (1-800-APL-CARE in the U.S.) or take your Apple Remote to your local Apple Store or Apple Authorized Service Provider (AASP) for service options.
if you do see the light, you can use the following article to help isolate the issue further:
Apple TV (2nd and 3rd generation): Resolve issues with Apple Remote
http://support.apple.com/kb/TS5157
Thank you for using Apple Support Communities.
Regards,
Sterling