Apple TV keeps rebooting

I recently updated to Software Version 2.4, and the Apple TV keeps rebooting. Specifically- when viewing anything from the iTunes Store. This is problematic because when the system starts up, poster art from the iTunes store launches behind the menu, causing the system to restart. The poster art actually never loads, but shows the grayed-out tickets. My only work-around is to unplug ethernet from the device, let it boot, move to a screen that doesn't show iTunes Store content, and then plug the ethernet cable back in. If I attempt to back into the iTunes store, say from the TV Shows> Top TV Shows, it reboots, and keeps doing so until I unplug ethernet. Content, synced or streamed, purchased or self-encoded plays back fine.
An unrelated problem is slow menus and menu flickering. When going back and forth to say, My Music> Playlists> My Playlist, it is now taking the Apple TV a much longer to catch up. Sometimes, especially when the playlist or list of TV Shows is long, the names of the shows or songs flicker.
Thanks for any suggestions.

Tried factory restore (which takes it back to v1.0). Everything works as v1.0 (trailers, etc). Can still sync and stream. Upon updating to v2.4, it restarts once the Apple TV tries to get into the iTunes store. Still syncs and streams, AirTunes, YouTube and Flickr work, it's just when I try to access the iTunes Store (Top Movies, Top TVShows, Top Music, etc) that it restarts. It doesn't do a full reboot, it just shows the White Apple, brings up the menu, then loads the grayed-out movie tickets in the background, then restarts again.
I have actually tried Factory Restore several times, and each time that 2.4 is loaded and the restart happens the first time, a diagnostics dialog appears and asks me if I want to notify Apple.
I have reset the my network, and have tried wired (which is normally connected) and wireless, and have tried syncing to another Mac, all of which end in the same result.

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