New Apple TV, I'm ready to return it

Me too! Would any one like it? Lol

How about a firmware update for the TV? The HDMI 'standard' is not as standard as one would think, and I had to update mine. In fact, I was a Beta tester for the update, after which they (Hitachi) released it online.

I would like it.

This i probably not the best solution, but I watch Netflix and Hulu Plus on an old Dell computer monitor that I'm fairly sure doesn't support HDCP. I use an adapter to convert the HDMI signal to VGA (unfortunately 1024x768) and stereo out via RCA plugs. It works well for my needs, but then it's my kitchen TV so it's not that big a deal. I think I paid about $35 or $40 for it through Monoprice. I have also used a similar converter for component video out and got a better resolution, but the picture wasn't centered. I still use that in another venue, but I preferred the VGA one for my kitchen TV.

Wait, you stated you already tired the HDFury1 and didn't work. So why would it still be a choice?

In theory, any of the HDFury should work to handle the HDCP issue. I used to use a HDFury2 with an old RPTV to connect an HTPC. I had used it, while testing, to a PS3, and it worked. But I was never under the impression the HDFury did HDMI out. I didn't keep up on the HDFury newer products, so it's possible they now do it. According to HDfury.com for HDMI, you need to get the HDFury4., which sells for $400 to $500. The HDFury3 sells for $250 to $300. All prices are from the HDFury store.

I know those prices are cheaper cheaper than a new TV. But looking at you're trying to hook up an AppleTV, I question the economics. I don't know the size of your TV and what you're trying to accomplish with the AppleTV. If it's just access to Netflix and similar applications, not iTunes access or Airplay, I would try a Roku. They're the same price or cheaper, depending on model, to the AppleTV. This still may run into the issue, but I haven't using two original Rokus and Roku XD (2nd generation Roku).

On a similar note, you may be able to get a newer HDTV such as a Westinghouse, LG, or Vizio that does have the smart apps for maybe a few hundred more dollars than the cost of what you're proposing and the AppleTV. I'm not exactly enamored with the idea of a new TV if the one you have fits your needs.

If you have component inputs, you could try getting old Roku or AppleTV.