Apple ID issues with Apple Tv 2

My husband bought me an Apple Tv 2 today. I was in the store with him when he bought it; it is new.  I tried logging in through my Apple ID and it will not accept it. I am facory resetting it currently and it is to take a very long time and I am not sure if this will work.  Has anyone had long term issues with this? It'd be nice to have this up and running before Christmas.

When I tried to factory reset, it said it was downloading the latest update. Then it says it can not update and to try again later.   Well, it installed after a few attempts, but will not let me log in through Apple ID   Solutions?

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