5.2.1 season pass and the tethered jailbreak.. what are the steps?

Going around in circles here! 


Using a MAC, everything, including itunes. 


Am I supposed to follow the untethered steps first of all? Reason I ask is because tethered seems to be dulled out as an option. 


If I do this, then everything hangs at the iTunes stage. But what is interesting, is that it appears that iTunes is going online and trying to download something, is this normal? 


Please can somebody can give the exact steps from beginning to end? 

Not sure if I fully understand your question as when jailbreaking the device, it does not matter whether untethered or tethered. Or maybe that simply answers your question! The only difference is that in order to boot your jailbroken ATV, you need to boot tethered using seas0npass. If the option is greyed out, I have a feeling you are using the wrong version of seas0npass. For instance, the previous seas0npass has the option greyed out simply because it is untethered and there is no need to do this. If you download the one available now (for 5.2.1), the option for a tethered boot is not greyed out.

The first stage is to get the jailbroken firmware onto your ATV2.  The process is the same for that whether you are using a tethered or untethered jailbreak.

The second tethered boot stage only applies to a tethered jailbreak, and will need to be repeated any time that the ATV2 loses power or has a hard reset done to it.  The fact that this option is greyed out suggests you have not done the first stage as that creates files needed at the tethered boot stage.