Apple TV unresponsive after 15 minutes in screen saver

Hi,
I have a 1 week old Apple TV. It works great until you leave the room. Then, after the screen saver kicks in for about 10 minutes, it will no longer accept commands from the remote.
The remote is unpaired, and I also tried my macbook remote on it, and that doesn't work either.
I have swapped batteries in the remotes, this didn't work.
The one intersesting thing is although I cannot get out of screen saver mode with the remote, I can hit Menu and - and reboot the apple TV.
The other issue is upon reset, it hangs on the Apple screen. The only way to succesfully reset is to unplug and leave it for at least 15 minutes.
What I have not yet tried:
1) Disabling the screen saver completely
2) factory reset

It was bought online through a third party retailer, so its not exactly as convenient as driving to the store. I'd rather exhaust my options before having to send it back.

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