Apple tv ethernet connection not working

Connected my new Apple TV to the ethernet cable and it doesn´t show the network available to connect to internet.
Am I missing some step ?
Thanks

ISSUE
After the latest software update, my Apple TV2 has stopped recognizing any form of network connectivity and appears to believe that it's connected to the network via an ethernet connection, whether or not there is one actually plugged into the back of the device.
BACKGROUND
I echo many of the previous posts... I've had Apple TV2 for over a year with no difficulties. Ethernet and wireless connections have always worked. For the last 6 months the Apple TV2 has been hardwired via my ethernet connection with stellar results. However, after the recent software upgrade, I've lost all network connectivity. Apple TV2 will no longer recognize the same ethernet connection it's always been attached to.  This is the same connection that has always allowed me to watch iTune movies, Netflix and download/install all previous software updates. Worse yet, when the ethernet connection is unplugged from the back of the device, Apple TV2 believes it is still connected to the ethernet cord, as if it's stuck, and WiFi functionality does not kick in.
TROUBLESHOOTING
This specific issue has nothing to do with the actual "network" so I am kindly asking people to stop recommending that we check our network/router settings and ethernet cords. Apple TV2 is designed to automatically activate its wireless function when an ethernet connection is not recognized. It's should be pretty obvious to anyone who is tech savvy that there is something wrong with the device and not the network, with respect to the specific aforementioned symptoms.
    STEPS
Nothing has changed on the network and I've tested the ethernet connection with both MacBook Pros... with success.
Restarted device multiple times
Attempted to restore device but no network connectivity makes this impossible
Connected device to iMac via micro USB cord and restored from scratch
Made the assumption the wireless antenna could not recognize network due to location, surroundings (i.e. tv stand, Directv receiver, SP3), etc. Moved Apple TV2 to another location and connected to different TV. Wireless functionality still does not activate when ethernet cable not plugged in.
All other common sense troubleshooting steps have been taken per Apple's troubleshooting recommendations and other blog site recommendations
I'm sure the latest software update worked for the majority of all Apple TV2 owners. Anything could have gone arwy during the update that could have caused this specific issue to present itself.  Either way, there are enough folks with the same complaint to warrant a deeper dive of the issue.  My next step will be to jailbreak the device since I have nothing to lose at this stage... it's a simple paperweight until I find a solution.

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