AppleTV: cannot type 'space' in YouTube search

in iPod + iTunes + AppleTV edited January 2014
Hi. Got a new AppleTV (40GB) for Christmas.

When I go to YouTube search, I am unable to type a 'space' or 'delete'. The cursor will not go to the bottom row, below the letters. When I press down arrow, it gets to the penultimate row then beeps.

I once got it down to that row (filling the search box, watching a video then going back to the search). When I moved the cursor off that row, it then would not go back.

This happens immediately after a restore to factory settings.

Any ideas?

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