Menu flashes, then apple logo, then menu... Help!

I bought a used 40GB Apple TV on eBay (yes, that was probably my first mistake).
The first time I turned it on, it set up language, network, etc. with no problem, but when it got to syncing with iTunes, the 5-digit code would "blink" on the screen (about 1 sec) and would then show me the Apple logo, then a new 5-digit code, the Apple logo again, etc. - and would continue this indefinitely.
I pressed menu to get that to stop and it went through the opening graphics - then when it finally got to the menu, it did the same thing with the menu - menu for 1 second, then the Apple logo, menu, logo, etc. I've made sure everything is plugged in (it is), I've done everything I can to make sure it isn't a network issue (network is working fine) and I've restarted several times. I've also restored factory settings and it made no change. Sometimes when I restart it is fine for a minute or two, but it always goes back to the menu to logo pattern.
I have two computers and I have made sure that both of them are off to make sure it isn't a connection issue with one of them.
Please help! - I was so looking forward to my Apple TV and am SO disappointed!

My problem started after a factory reset.
I had the same problem and found that pulling the network connection immediately stopped the back and forth between the Apple logo and the menu. If I plug the cable back in it immediately starts again.
Also, as soon as I put in my wireless network settings the problem comes right back.
It appears that this problem is caused by something the Apple TV is trying to do related to the network.
I reset my router and now everything is working fine.
Perhaps others could confirm whether resetting their routers fixes the problem for them and perhaps Apple could get something in the FAQ if resetting the router is the answer.
Message was edited by: gtrogue
Message was edited by: gtrogue

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