Does anyone know how to fix a 1st generation apple tv that plays moves by frames?

My 1st generation apple tv is playing moves in frames. Does any one know how to fix this?
I have done a factory reset but did not work?
I have checked that I have the latest softwear 3.0.2. Is this the problem?

Try:
- iOS: Not responding or does not turn on
When it says place the iPod in recovery mode use this program
RecBoot: Easy Way to Put iPhone into Recovery Mode
- If not successful and you can't fully turn the iOS device fully off, let the battery fully drain. After charging for an least an hour try the above again.
- Try on another computer
- If still not successful that usually indicates a hardware problem and an appointment at the Genius Bar of an Apple store is in order.
Apple Retail Store - Genius Bar       

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