Does anyone know how to manually install firmware onto your Apple TV?

I have been trying over and over again to update my apple tv to the latest version (3.0.2) of the software. It downloads the update just fine and then I select update now. It shows the apple logo and begins the update, progress bar shows movement until 3/4 of complete then I get the awesome, very descriptive answer "Your apple TV cannot be updated". Earth shattering, the apple TV programmer should have just written "If you don't own a protection plan we just found a new way to charge you because you are going to have to call us to fix this now sleek looking box in front of your TV" or "I am too busy to give you a proper error code" or "The sky is Blue" or "PEBKAC Error (Problem Exist Between Keyboard And Chair)" at least I would have laughed.

Back to the issue:
So after the GREAT ERROR MESSAGE the Apple TV takes me to the Apple TV recovery menu and 3 options, 1. Restart Apple TV (does nothing except loop back to the recovery menu), 2. Run Diagnostics, 2. Factory Restore. I have tried all 3 options, diagnostics says its running correctly (every time). However now that I've done a factory restore I went from being stuck on 3.0.1 (which WORKED!!) to 1.1.

Any suggestions on how to get the upgrade and install to work?

Ive had the same Problem Im going batty! help someone please