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A ways back, Apple pushed out an update for the previous (not the one released today) ATV. I had it hard wired and could NOT get the update to take or get the ATV to play nice. I searched around and the general response by others was to do the update over wifi. So I disconnected the ethernet cable, update went fine, and I never re-attached the cable. Speculation in those searches is that Apple is really favoring wireless and at some point the hard connections may go away entirely.
 
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