HT1595 Apple TV will not  "activate"

My Apple TV was working  (some hic-ups are usual), however I was hoping to get a refresh on the software so I pushed the "reset" button.
I needed to input the IP address manually (whihc seemed odd) but got through that and have a good signal and connectivity I assume...however I am unable to activate the Home Sharing function (my acct or password are identified as not correct)  I changed password, updated my mac for the new iTunes passpwrds and home sharing on my mac. After some fiddeling I noticed that in settings/general/about  the last line shows as ACTIVATION     FAILED.   I surmise that without a successful activation I probably will never get a Home Sharing function to work...( I have turned apple TV off, I have unplugged all the plugs, I have pused re-set again all with the same result)
Q1-  How do I get Apple TV to activate with out failing?
Q2-  What do I do next?

Hey there Wply,
It sounds like you are unable to successfully activate Home Sharing on your Apple TV. I would use troubleshooting steps 5 and 7 from the article named:
Troubleshooting Home Sharing
http://support.apple.com/kb/ts2972
Here is step 5 to get you started:
5. Check Firewall settings
If you have a firewall enabled in your router or computer, make sure that the firewall is not blocking communication between your computers. Home Sharing uses TCP port 3689 and UDP port 5353 to communicate with shared iTunes libraries.
In addition, Apple TV and Mac computers will use port 123 to set the time automatically. Incorrect date and time on either the computer or Apple TV can cause errors for Home Sharing and connections in general.
If you are unsure whether your router has a firewall or the required ports open, test additional devices or another network to help isolate the issue. If the devices tested work on another home network, it is your router or network configuration.
For Mac OS X, you don't have to edit the port addresses, but make sure the firewall in Apple () menu > System Preferences > Security > Firewall are not set to:
Block all incoming connections
Allow only essential services
If you use another security/firewall software on your computer or router, follow this article or contact the manufacturer or check the documentation on how to open TCP ports 123 and 3689 as well as UDP ports 123 and 5353.
For more information on ports used by Apple products, see Well known TCP and UDP ports used by Apple software products.
If the issue persists, I would next restore the Apple TV with this article and test the issue again:
Apple TV (2nd and 3rd generation): Restoring your Apple TV
http://support.apple.com/kb/ht4367
Thank you for using Apple Support Communities.
Regards,
Sterling

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