Hi,
I can’t get past step 1 - ifaith 1.4.2. It is asking me if I’m dumping an atv2 - I say yes - it tells me to plug in the atv2 via usb and to not hit start until the atv2 is blinking. There’s 1 longer blink followed by a quicker less bright blink. I hit start, it tells me to prepare to hit menu/play, I do, then release when asked, it blinks very rapidly for second and then at about 2 seconds left it says failed to enter DFU. What am I doing wrong?
Thx
Tal
Try having the USB and the Power cable plugged in when trying to enter DFU.
Also make sure you are directly connected to the Computer (not through a USB hub).
That worked - now when I try shift restore in itunes I got error 1602 the first time and 1604 the second time 
The restore process is finicky. Trying different ports, cables and if your using Windows preventing it from trying to contact Windows Update Server for the drivers all tend to help.
To disable Windows Update driver fetching do the following (Windows Vista+):
Start > Right Click Computer > Properties > Advanced system settings > Hardware tab > Driver Installation Settings > Select “No, let me choose what to do” then choose “Install driver software from Windows Update if it is not found on my computer” > then click Save Changes.
This should help by allowing the computer to quickly install the drivers for the device instead of trying to download them.