Hi there. This is just more of a heads up - and does not contain any solutions.
I bought ATVFLASH about 1 week ago. Since then - I have used the installer to create about 15 installs on my flash drive. I factory restore my apple tv about 2 or 3 times per night. The reason is that once I have it installed - I am ssh’ing in and screwing around and eventually break something. (trying to learn more about the hacking etc) Every flash drive creation I do - I also end up choosing a different set of plugins to be installed onto the flash drive.
Point is - my Kingston 1gb flash drive has worked great.
Last night I again factory restored, created a new flash install and it installed fine.
2 hours later - i created a new flash drive - factory restored - and now my usb key WOULD NOT install. it would not recognize my flash drive. WTF? So I created a new flash drive install - and again tried to get the ATV to recognize it and it wouldn’t. it would just keep booting into the regular appletv menu.
So - now I am getting worried.
My flash drive has an LED light on it that lights when data is being accessed. i remembered that usually that light comes on when inserted into the apple tv. but now nothing. so i unplugged the flash - replugged it in. nothing. unplugged, replugged, nothing. wiggled the flash around in the atv usb slot and voila - the light came on - and i rebooted the appletv and it installed fine as usual.
I would suggest anyone having an issue when installing (and your flash drive has a light on it) - reboot the apple tv by pressing volume down/menu for 6 seconds. after about 30 seconds it will give you a menu asking if you want to restart/restore settings/factory restore.
at this point insert your flash drive and take note if the flash drive led becomes active. if the light does NOT come on - as far as i can tell it will not install. and again - i had to replug it a few times and wiggle it in the usb port o make it work again…
hopefully this can help someone…