Atv shows itunes logo and usb cord

My apple tv, when connected to the television, will only show an itunes icon with a usb cord.  I tried restoring by connecting it to the computer through a mini usb but I keep getting a message saying "There was a problem downloading the software for the Apple TV 'Apple TV'. The network connection timed out. Make sure your network settings are correct and your network connection is active, or try again later." Don't know what else to do.

Welcome to the Apple Community.
Unfortunately many locations are currently experiencing update/restore .dmg server problems, even more unfortunately this has now been happening for over a week, the only thing I can suggest is to try again later. I have no idea whether an Applestore would be able to restore your Apple TV for you.

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