My Apple TV is searching after update, is it going to work?

i ve had trouble with my Apple TV not being compatible with my Panasonic Vera in the past and was given a new Apple TV - since then I've not updated it. it was on 5.1 but tonight I've decided to sign up to Netflix and it required an update so I thought I'd give it a try. But after step 2/2 it is still searching and I've got nothing except the round searchy thing going. It's been like it for at least 15 mins. The little light on the Apple TV Is on steady but flashes every now and then.