Working with iTunes 11, I couldn’t get the 5.2 jailbreak to work. The ATV2 was prepared for restore (i.e. everything was scrubbed) but the jailbroken IPSW didn’t install and the process exited with an error dialogue. I tried this five times, switching from my PC to a laptop just in case it was a machine config problem. Still no dice!
I don’t know what (other than desperation) motivated me but I decided a different approach was necessary. Instead of just doing the default left-click on the IPSW button, I right-clicked on the create IPSW button, which presents a choice of iOS versions for installation. I chose the most up to date one at the bottom and when the magic was done and the Apple TV2 was put into DFU mode, the installation script did its stuff; iTunes was opened and the correct iOS was chosen and installed automatically, without my intervention. I’m not sure why the script didn’t work choosing the default IPSW creation method but it worked faultlessly when choosing a custom iOS. I went to bed last night at 1:45am (I hate to leave a problem unsolved) very tired but very happy. I am now on iOS 5.2 with official Bluetooth support (Yippee!).
I hope this method helps other users who get stuck using the default installation method in Seas0nPass.