Yes, that's right. I have a VERY early virgin ATV2 running "Software Version 4.0" ... it was a pre order.
I have read many FAQ's & HOW TO's, but frankly this thing is so out of date that the information I can find does not seem to be relevant and many of the download links are no longer valid. My goal is to jailbrake and get XBMC on the box. Having other native functions such as Netflix or Apple are optional.
How should I proceed? What is the best way to get [a|the] favored jailbroken verison of firmware on the box.
Although the 4.0 can be jailbroken to untethered, my suggestion would be save those signatures (optional) and go directly to 5.3. To do that
1. Get the latest seasonpass http://support.firecore.com/entries/387605
2. Choose save signatures by right clicking "create ipsw" (I just noticed that the latest doesn't list 4.0 as being able to save... maybe search the internet for an earier version)
3. After save choose 5.3 by right clicking "create ipsw". Some people say you have to update to latest version first through iTunes, but I never had trouble going straight to the latest jailbreak via seasonpass.
4. If you have trouble then go ahead and update to the latest then do step #3.
5. Seasonpass should finish the rest*
* I believe you must have iTunes installed so the computer recognizes the ATV even though the latest seasonpass doesn't use iTunes.