If you are getting the connect to iTunes icon then it normally means you have a tethered jailbreak installed, and the ATV is waiting for you to connect your PC/Mac via USB to complete the boot process.
I had the same problem, but i just have done the job, its working. I did follow this instruction http://bit.ly/H3yZ51
After many tries, this did it for me:
Be near the TV with the HDMI cable ready.
- Follow the steps for Seas0npass, creating a custom IPSW. Do not connect your AppleTV to the computer until told so. Do not have the power plugged in
- You must count 7 seconds at all times, I doubt it is really necessary, but better safe than sorry
- Let the script do it's work (remember an old rule to not have a billion interfering applications running, let the computer do one thing)
- Disconnect the AppleTV from the computer, wait a little bit, plug it in again (for tethered boot to work)
- Plug the power cord in - this for the swap between microUSB and HDMI to work
- Do a Booth tethered in Seas0npass, remember the 7 seconds
- Keep the power cord in
- Remove the microUSB and plug in the HDMI
That was voila for me.
If it does not work, you might have to restore the AppleTV with the default software from Apple via iTunes (vanilla) and redo the whole process.