Hi everyone, first time user to this forum. and Happy Holidays !!
Just to let everyone who had the same issue as you AND ME, I’ve managed to get my Iphone 5 working with the iOS 7, with the ATV 1st Gen.
I went to “launcher” on the usual cross media bar.
go to downloads and one by one downloaded and installed the updates.
the ones i had were
XBMC 10.1 - Dharma
XBMC 11.0 - Eden
I went from top to bottom installing the updates, then the ATV reset itself after the last one.
Once it fired up again, i went to remote HD on my phone, and my 1st Gen ATV appeared in the list of devices,
So i swiped up the control panel on the iphone5 and airplay was available.
Im now listening to my music from my iphone’s library on the ATV… Christmas miracle!!
All the best for the new year!