After hours trying to get my Sandisk 8GB Cruzer stick to boot my ATV, my 12 year old son suggested that we use his 1GB card from his PSP that we could mount via my Sandisk USB-based card reader and sure enough it worked the first time.
Now, I have some issues with my ATV Flash.... mostly Nito DVD streaming related... but it dies not appear to be related to the way we booted and did the initial install. We did not see any type of error until we accidently ran the smart update a second time and my son cancelled it... and now when we run it again we get a failure message "Partial... or failure".
Where is ATV Flash support? I cannot reach them via phone or email -- I would have thought that I would have these problems solved by now.
Thanks, and good luck!