I have the same problem .Did you install atvfiles?  I think atvfiles 1.2.1 is 
the problem and you need to get the 
1.3.0Beta.
Anybody how do I get 1.3.0 on to the tv, please give full explanation.

Yeah, i've installed atvfiles. Let me try 1.3.0beta. Will keep posted with the 
results. 

You were right, my problem was due to ATVFiles. Things working perfectly after 
installing ATVFiles-1.3.0b1.

You can either ssh ATVFiles-1.3.0b1 to Atv or run the following command from 
terminal

Type: 
wget http://ericiii.net/sa/appletv/ATVFiles-1.3.0b1.run

Once the .run file is on atv you can install from terminal

Type:
chmod +x ATVFiles-1.3.0b1.run

Type:
./ATVFiles-1.3.0b1.run

Good to hear you’ve got things working.  
"You can either ssh ATVFiles-1.3.0b1 to atv” I was afraid someone might say 
this, I don’t know what folder to 
ssh to so I’m going to give the terminal commands a go, maybe, if i can screw 
up the courage. Thanks.

Well in that case i would say just log onto to the console (putty or similar 
apps), 
in the command line start the steps i mentioned from  
"wget http://ericiii.net/sa/appletv/ATVFiles-1.3.0b1.run" .. by that way you 
don't 
have to worry about which folder the files need to be put in. 

Had same problem Atv files was the prob , fixed with beta thanks for the info!! 
life 
saver! My wife would have killed me if I had to go through redoing everything.

I am having the same problem with

Apple TV 3.0.1
Mac OSX 10.6.3
atvusb-creator-1.0.b13

Please teach me how to transfer the file TVFiles-1.3.0b1 AND where to find it! 
I am 
sorry, but I am new to this and I don't kno how to do it.

PLEASE HELP ME!!
Thanks a lot indeed.

wget http://ericiii.net/sa/appletv/ATVFiles-1.3.0b1.run
chmod +x ATVFiles-1.3.0b1.run
./ATVFiles-1.3.0b1.run

via SSH

:)

GREAT! II WORKED! 
Thank you so much!

PS
Just one thing: after installing the software, the installing software menu 
disappeared 
(the first menu on the left). Is that normal?

nope. unless you rm -rf'd softwaremenu you should still have it. 

Well, I cannot see it anymore... after downloading last software from "3rd 
party 
applications" (I thought it was "software menu"), I saw "error occurred", I 
unplugged 
the atv, I plug it again and I couldn't see the first menu on the left 
anymore...

Anyway, I don't complain, because I SOOO HAPPY have been able to install 
SILVERLIGHT 2.0 and IT WORKS with boxee browser: I can watch embedded videos. 
I followed these instructions:
http://wiki.awkwardtv.org/wiki/Firefox#Adding_Plug-In.27s_.28AppleTV.29
I also add al the indicated fonts.

Now I have the following problems to solve: how to install mobile air mouse? (I 
hope 

Remember I have the following configuration:
Apple TV 3.0.1
Mac OSX 10.6.3
atvusb-creator-1.0.b13

Thank you in advance again! I think you guys did really a great job with atvusb-
creator and you deserve really DONATIONS! With you we can have the same that 
other people make us pay...

UPDATE:

1) Regarding Software Menu: I followed the instruction here 
http://wiki.awkwardtv.org/wiki/SoftwareMenu
but, after rebooting, I still cannot see any change.
I ssh (via cyberduck) the SoftwareMenu.frappliance folder to my TV but I 
couldn't 
install it to the plugins folder 
(/System/Library/CoreServices/Finder.app/Contents/Plugins/), because I don't 
have 
it! Should I create it?

2) Regarding air mouse: I downloaded the  Air Mouse Server file from here 
http://www.mobileairmouse.com/ (taking the tiger version: not the file 
OS_X_Server, 
because it is for snow leopard and doesn't work!!!) and ssh (via cyberduck) to 
the 
applications folder of nitoTV.
After reboot, I can start it from the menu applications of nitoTV and I was 
able to 
connect with my iPhone to appletv!! (Of course I already had the air mobile 
application on the iPhone).
PROBLEM: I can move the pointer, but I cannot use the air mouse to surf with 
the 
boxee browser or firefox because when I exit from the Air Mouse Server.app 
(digit 
Menu on remote) to open another application, mouse stops working!! WHAT DO I 
HAVE TO DO???
I am very near to have a great browsing experience!

This is not the place for diagnosing issues with 3rd party software. Your best 
source of knowledge and advise would be the developers of the software you are 
using. 

[deleted comment]

Well... Softwaremenu.frappliance was on your patchstick: I could see it before 
and now 
(after downloading software menu update) after "an error occured" (+rebbot) I 
cannot 
see anything anymore.

You maybe right for mobile airmouse (you didn't include it in your patchstick): 
but it's a 
very common application, running on the other apple tv hacks. 

Anyway, I don't miss them particularly and I thank you for your great job.

Yes, we do include SoftwareMenu on the patchstick. However it is still in a 
sense a 
third party app. The reason I say contact the third party developers is because 
they 
know more than we would, being the original devs. I am trying to tell you where 
you 
can get the best help possible. 

Personally, I would delete software menu through SSH with this command:

"sudo rm -
rf 
/System/Library/CoreServices/Finder.app/Contents/PlugIns/SoftwareMenu.frapplianc
e"

Reinstalling with this:

wget http://iscripts.googlecode.com/files/SoftwareMenu-1.0b1.run
./SoftwareMenu-1.0b1.run

Bare in mind there are more recent ZIP archives available if you are happy to 
copy 
the contents into Finder.app's plugins directory. Tom Cool updated these to 
address 
bug issues so it's your best bet if something is not working right. But ask 
him, 
he's the dev.

Thank you so much! You have been really helpful. 
In the meanwhile, I have been able to make Mobile Air Mouse working great on 
atv (with 
usb-creator patchstick)!
 I thinking about posting the instructions to help our users to do the same: what do you 
think? Should I open a new issue on purpose?

If you feel that it will contribute, there's no harm in doing so, but it isn't 
really atvusb related. Ultimately, it is up to you. 

Issue 528 has been merged into this issue.