I Got the email today that said 4.1 was available and compatible with Apple TV 3.02. I installed 4.1 then updated to ATV 3.02 and like magic I no longer have ATVflash. It took me hours to get ATV flash working the way I wanted and now I get to start over -maybe. Not sure it’s worth the effort again.
Anytime the AppleTV software is updated aTV Flash will need to be reinstalled using a flash drive. Your synced media and settings should remain intact after the update.
When an update comes out i Just pop the new ATV flash on a dongle, unplug the apple tv and plug the dongle in and wait about 5 mins. Nothing actually happens, the screen just stays blank but after five mins take out the dongle and restart the Apple tv and the new software is installed. Never a problem for me. Never once have I updated any other way.