Seas0nPass is a new jailbreak tool designed by FireCore specifically and exclusively for the AppleTV 2 (no other iOS devices support). This magic piece of software allows you to jailbreak your atv2 with the latest 4.1.1 (iOS 4.2.1) software by creating custom AppleTV IPSW files and restoring them in iTunes (similar to the existing Pwnage Tool app). It also includes a simple ‘tethered boot’ option which aids in using newer AppleTV firmwares when an ‘un-tethered’ jailbreak is not yet available.
Seas0nPass is available for free, and is open source (the source code is available on Github). It’s Mac only (OSX 10.6 or later) for now but the Windows version should be released soon.
Here are the instructions on how to use Seas0nPass to jailbreak the Apple TV 2:
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iOS 4.2.1 brought only some minor bug fixes related to resolution and download problems, so if you updated to 4.1.1 you are still able to jailbreak your Apple TV 2G with PwnageTool. All you’ll have to do is to use new PwnageTool bundle to jailbreak iOS 4.2.1 instead of iOS 4.2 PwageTool bundle. Note that this jailbreak is also tethered, which means you have to connect your Apple TV 2G with PC and use Redsn0w or PwnageBundle to boot it.
Here are the instructions from nitoTV
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Apple has just released a minor iOS 4.2.1 software update for the Apple TV 2G. It addresses an issue that causes some high-definition TVs to incorrectly display at 480p as well as an issue that may cause a movie or TV show to be re-downloaded. The build which is marked as iOS 4.2.1 (8C154) is reported by Apple TV as software version 4.1.1. The previous Apple TV iOS 4.2 was Build 8C150 and it was reported on the device as 4.1. According to nitoTV, it appears that SettingsAboutViewController grabs the “software version” number from the Info.plist inside of AppleTV.app rather than [ATVVersionInfo currentOSVersion] which is why it listed 4.2.1 in 4.2 and 4.1.1 in 4.2.1. NitoTV also confirmed that tethered Jailbreak for 4.1.1 still works “just fine”.