The software works. Apple TV 2 is a bit finicky, so you have to be very meticulous about the timing of the cord swapping. I tried a dozen times with no success until I watched this kid's video on youtube. I gotta give him props. I was doing everything correctly, but it didn't work until followed Ty's instructions.
If you are afraid of the link try this:
After loading/restoring the ipsw file, unplug everything, shut down seasonpass. Plug the mini usb and power into the apple tv, but not into the mac or powerstrip. Start seasonpass, let it do it's thing for a sec until it's prompting you to do the dfu mode stuff, plug in the mini usb, give it 2 secs and when the apple tv starts blinking quickly, plug in the power, quickly. Then hold down the menu and play/pause buttons. As soon as the pop-up says it's safe to unplug the mini-usb, get on the good foot and plug in the hdmi.
None of this worked until I moved my imac into the living room. That's how quick you have to be about the cord shuffle, quick.
This is on a 2007 imac, an apple tv 2 I bought from best buy on 3-27-11 with ios 4.2.1. I used the latest version of season pass found here:
and finally found out I jailbroke it when aTV Flash (black) Beta4 actually worked. Now xbmc, plexo, and loads of other stuff I don't know how to use are loaded on my apple tv 2. Props gentz