Apple TV seems to be stuck in a loop

I was watching a TV show when all of a sudden the apple logo came on the screen, then the menu came on, then the apple logo, then the menu, again and again every few seconds. I could not get Apple TV to respond except to Menu/- which allowed me to run the diagnostic which told me Apple TV was fine. Then I rebooted. After start up, it displayed the apple logo and the menu, the apple logo, then the menu, over and over.

I then tried to restore Apple TV to its factory settings. I got all the way through to when it gives you an Apple TV Code to enter into iTunes, but the code kept changing every two seconds. I was not able to get Apple TV to respond to anything after this. It is stuck in some sort of loop where it is continually updating the Apple TV codes.

Suggestions?