I had the same problem. I was using wifi to set up my Apple TV. The problem was with my router. I had originally set up my router to require a login password to access wifi. This is like the password needed when you go to a hotel. It's not WEP or WPA. So if someone was in my home, in order to access my wifi they would have to type in a password I originally set up. The problem was, the Apple TV box couldn't enter this password. So when I originally installed the Apple TV, it found immediately my wireless signal, and on the network setting, everything looked perfect. The problem was, though, it wasn't communicating with the router, and therefore no signal was ever sent to ITunes to authorize the Apple TV box. As soon as I removed the password requirement from my router, it all synched perfectly, and I was then able to watch everything on my Apple TV. So, you might want to check your router settings. It may have nothing to do with the Apple TV itself.