It's possible that you have something interfering with the IR. Check for any remotes with a stuck button (stuck in a couch cushion, stuck in a storage box with the lid resting on a button) or any other IR device in the room (wireless game controllers, etc). I've even heard of recently replaced lightbulbs (mostly halogen) causing IR oddities.
If you can't find anything that might cause interference, I suggest restarting the unit with something blocking the IR sensor (a large book is good). After startup, slide the remote in behind the book (still trying to block out interference) and see if you can control the unit.
Just to cover all the bases, you might as well try this old step as well (it doesn't help in too many situations, so it's a bit of a reach):
Reverse the position/polarity of the remote's batteries (I'm assuming you've already replaced them with fresh ones), press a few buttons, then return the batteries to their normal polarity.
I'm also concerned that you only have SW 7.1, as all Series2 units should now be running 7.2.1. If you can confirm that you only have 7.1, send me a private message with your 15-digit TSN and I'll see why it hasn't upgraded.
TiVo Field Trials Program Manager
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