Apple TV Activation Failed???

I recently purchased an Apple TV (2 months ago) and it was working fine but now all of a sudden under General Settings, About, it says activation failed and it will not allow me to view Hulu Tv etc. Also, an error message comes up saying I need to verify payment information in my iTunes account. I went in and verified and its still not working.  I reset all the settings, I tried restoring, I restarted and also reset my modem and wireless router (even though it's hard wired to the modem. In addition, I turned on home sharing on all m devices and nothign is listed under "computers"... totally annoyed.
Has anyone else had this issue? I am so frustrated! Thank God for Airplay so I can watch TV because I don't have cable, only apple tv.

I just noticed this problem today. I had the same exact issue. I tried rebooting it and it wouldn't come up. It would just show the activation failed screen. I did a restore from iTunes. Now I can use it but it still says activation failed under settings > general. Did you by chance have iOS 6 beta installed?

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