Apple tv 2.3 will not update to 3.0

Hey everyone... I have an Apple tv that will not update to version 3.0 event though i can watch Youtube from it and it has a solid connection. I get a message:
There is no update available.
Apple TV can't check right now. Try again later.
So if someone can help me with that and also try and explain this to me... I am going to leave the TV connected to the Internet and a big tv set on the top floor of the house... There are many other computers and screens throughout the lower floors and a large database as well... If I connect a Mashine running Itunes and then convert a lot of the stuff is there I can use the Apple tv to stream content to the other computers and screens?

Welcome to the  Discussion Forums.
Try a factory restore or check that the router isn't blocking any ports used by the tv.
See the ports required by the Apple TV
The tv will not stream to any other device.

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