I just got my setup working correctly last night.
I seem to recall that the size of my 2 TB Western Digital drive is being reported as 1,800 GB.
What I did was…
- download the Western Digital Web site utility that allowed me to disable the “Virtual CD” that was on my model of drive.
- use my Mac’s “Disk Utility” program to create ONE (1) partition on my drive; it only wanted ONE (1) partition.
- Restored the Apple TV to factory settings and then UPGRADED to the latest 3.0.2 software
- Installed ATV Flash being very careful to follow the instructions to the letter.
I think one step in the instructions that might present problems for some users is failing to SYNC the Apple TV with iTunes immediately prior to installation of the external USB drive.
I’m using my external USB drive as PRIMARY.