I have exactly the same problem. Set the unit up, made all the required settings and working fine.
Downloaded the update after setting up the unit and received the message that it had downloaded successfully.
All was working fine until 2 days later when the game my son was playing froze.
The unit wouldn't turn off at the power button and the only way it would turn off was to pullout the power cord.
Since then it has been freezing up each time a game is played and the only way to turn off is to take out the power cord.
I have tried all the trouble shooting suggestions in the manual and on forums to no avail.
Now all we get is the error that the game pad cant connect to the console and that the tv has no signal and to check connections etc.
Everything is plugged in correctly, have tried sync many times without any success.
The game pad will turn on the console after we have unplugged the power cable and re connected but then the same errors and no connection or signal.
It doesn't however turn the console off and again we have to pull out the power cable to turn it off.
Have tried holding the power button down again no luck, have tried holding both sync buttons down to try to reset again no luck.
This is all extremely frustrating and I agree the other comments here and on other forums that it appears to be a fault with the unit.
Would I be correct in assuming that If I return the unit all our settings, game stages, etc will remain or is there a way I can save the data and then erase.
The other problem is that without being able to see a display on the TV I can't see any way to give the console instructions to save etc.
Any suggestions or help as to what may be the problem would be very much appreciated.
Edited by germzz, 11 January 2013 - 09:28 PM.