Apple TV (1st Gen) can't find update...

I recently got a 1st gen Apple TV from a friend who no longer wanted it.
In order to completely reset it for my use, i ran a system restore using the Menu + - combination and it restored to 1.0 (It was one of the first 40GB units released)
The issue i'm having now is that it alternates between the Apple logo on boot up, displays the menu for approx 1-2 seconds, then goes back to the apple logo. I can stop this by blocking internet access via my router for the AppleTV and it stops and displays the menu.
I then can re-enable internet access and attempt to update, but it finds no update. I really want to be able to set this up for my daughter in her room to replace the DVD player and give her access to my movie and music collection, but if i can't update it, then i'm kind of out of luck and have got a nifty looking paper weight....
Can anyone tell me if there is anything i can do at this point? I'd like to avoid using any method that would require me to dismantle the apple tv if at all possible.
I have another Apple TV that resides in the living room and i love it and would like to be able to add to my stable :-)

Have you tried starting up without internet connection at all (not simply removing it) and then once booted attaching ethernet and checking in Settings for updates manually?
There was a recent thread where someone with similar issues got it to work eventually but I'm struggling to find it.
Please send Apple feedback - they seem to have pulled the rug out from under AppleTV 1 user's feet - restoring to 1.0 or whatever shipping version is teh recognised meothod to reset to shipping - it needs to work for those that shipped with 1.0.
http://www.apple.com/feedback/appletv.html

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http://support.apple.com/kb/TS1315
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Welcome to the user to User Technical Support Forum provided by Apple.
Please do not post your Apple ID on a Public Forum. I have requested the Hosts remove your Personal Information.
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Have you tried resetting the iPad, to do this:
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I had a 1st & 2nd gen Apple TV, an iMac with Lion, an iPhone 3GS and iPad 1st generation not talking to each other - they had all communicated perfectly well over the last few weeks and months (post and pre Lion upgrade).
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Factory restore Apple TV 1st gen and set up with @mac.com email address details (not my @me email alias)
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Turn off computer, iPad, iPhone, BT Home Hub, Netgear Wireless router, unplug Apple TV 1st generation & Apple TV 2nd generation (mains and HDMI).
Go to shop to buy gin and tonic ingredients
Turn on BT home Hub and when completely booted -
Turn on Netgear router and when completely booted (make G&T during this time) -
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All back to normal.
Now this may be blindingly obvious to you, but just in case it isn't, I thought I'd write it all down in the hope it helps someone. It may not be the email alias, it may just be resetting everything, but I did try that first before fixing it using the steps above.
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I assumed that by using time machine to import everything onto the new iMac that the new machine was effectively the "old machine". Maybe not. It was set to sync to the old mac, so will try setting up the Apple TV again on it's computers tab.
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Hi
This has probably been covered a few times but the only answers I could find was from an archived discussion.
The other day I was given an Apple TV 1st gen, it had not been used for quite some time, and decided to upgrade the software, when I noticed it still had old pictures and music on from the previous user, not wanting to keep these pictures, I decided to reset the machine to factory settings, which it did, but on the restart it was stuck at a loop giving me a code to enter into iTunes, and then resetting and giving me a different code.
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Cheers
Dave

sounddave,
I have been in the middle of the same problem for months.
I think the problem is with the software version that the older 40GB Apple TV's revert to after the factory restore. Mine reverted to version 1.0, and that is when the loop started happening. Since when did a factory restore become a factory paper weight creator!
I read somewhere that the Apple TV looks at an Apple server and the older software doesn't play well with the updated server causing it to keep rebooting. I'll try to find a link about this if I can find it again. I remember reading that it happened to a bunch of people with older Apple TV software on a particular day that Apple upgraded their server.
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re-set apple tv
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turn off "Home sharing"
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Thanks for all the helpful answers I received on this thread!!!!
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Apple TV (1st Gen) no longer appears in iTunes 10.

Hi there, my Apple TV (1st Gen) no longer appears in itunes 10.
I have looked at as many of the forums as I can and I have followed all the advice to reset Apple TV, router and PC. No joy. I have then restored Apple TV, uninstalled and reinstalled itunes, checked router ports etc. but still no joy.
The Apple TV is connected to my network just fine (I can download movie trailers etc.), my PC is connected to the network just fine (itunes store opens and I can shop). However, the Apple TV does not appear in the devices list on the LHS of the itunes window, there is no Apple TV tab in preferences and I cannot locate my library (not listed) on the Apple TV.
Basically I have tried everything I can find to try to solve this, but no joy. Please can someone help me as this is driving me crazy?

If you've reset AppleTv, have you actually set up the sync/share computer again?
If not go to Settings>Computers and add a new library - a 5 digit code will appear for you to enter in itunes.
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AC

Apple TV (1st Gen) not seen by iTunes

Hi there, my Apple TV (1st Gen) no longer appears in itunes 10.
I have looked at as many of the forums as I can and I have followed all the advice to reset Apple TV, router and PC. No joy. I have then restored Apple TV, uninstalled and reinstalled itunes, checked router ports etc. but still no joy.
The Apple TV is connected to my network just fine (I can download movie trailers etc.), my PC is connected to the network just fine (itunes store opens and I can shop). However, the Apple TV does not appear in the devices list on the LHS of the itunes window, there is no Apple TV tab in preferences and I cannot locate my library (not listed) on the Apple TV.
Basically I have tried everything I can find to try to solve this, but no joy. Please can someone help me as this is driving me crazy?
(I have also posted this in the Apple TV forum as I was not sure if it is an iTunes or Apple TV issue)

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Apple TV (1st Gen) can't find update...

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