Apple TV 2 won't restore

My Apple TV 2 was slowing down when I was streaming itunes radio. The folks at my local Mac Store suggested doing a restore. I tried this and it won't restore when I hook it up to itunes. Get a message saying an "...unknown error has occurred". Now when I plug the thing back into my tv system I get the itunes icon with the ipod white wire. What now? Help!!

Welcome to the Apple Community.
I think I'd be taking it back to the store.

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