Jailbroke ATV 2 and intalled aTV Flash (Black) with no problems. But now when Apple flags that an update is available, I select "Update Now" and it then goes to the Preparing update screen. It then hangs on the inital bar, then says an error has occured and the update could not be applied.
Nothing else has really gone wrong other than that.
This is expected behavior. You cannot apply an Apple update to a Jailbroken ATV2. If you want to give up the jailbreak (and ATV Flash) then your would need to do a restore in iTunes to revert to standard software