Humm… If anyone runs into the error; check to make sure that you have enough space on the ATV; I had to clear out a bunch of extra files in the XBMC folder.
Ah ha!
I figured out why this was happening to me. Since this installs via wifi you need to have internet sharing turned on your computer so you can share files with your apple tv.
see pic.. I had everything turned off but I turned on internet sharing and file sharing.
Who runs awkwardtv? it seems like it went down this afternoon.