According to most discussions
If ITUNES does not recognize your ATV2, then you might have a MicroUSB cable issue. I am getting the USB NOT RECOGNIZED message.
1) If WIN7 can recognize that something is attached to USB, does that mean my cable is working? Implications are that might not be true. That I might still have a CHARGE ONLY micro usb cable.
2) So what is a source for a known good MICRO USB cable that will work with the Apple tv?