Have you tried switching off the console and disconnecting then reconnecting the neck of the guitar before starting again, good luck.

i have the same problem to, i cant mannage to get it working either, please helkp me!!! just got it for crimbo 07 and still cant play it!

Ok, I spent an entire day screaming at my ps2 because I couldn't get the guitar to connect to the wireless reciever plugged in to the ps2. It now works!!! Here's what I did: I took everything apart as if I had just got it out of the box ie the neck off the guitar, the batteries out of the guitar, turned the guitar off, the reciever out of the ps2 and the game out of the console. I also unplugged the ps2 completely from the electricity for at least a minute. First of all I inserted the guitar neck making sure it was solidly connected. Then I put the batteries into the guitar. Next I blew on the reciever and the port for the controller on the ps2 (to make sure there was no dust in iether) then pushed it in and again made sure that it was plugged in tight. Next I put the game in and turned the ps2 on. I then turned the guitar on. As usual the light kept flashing on the reciever this time I held in the reset button on the reciever for TEN TO FIFTEEN SECONDS. I know the troubleshoot guide says 3 secs but honestly I think that this is what fixed it for me. As soon as I released it and pressed a button on the neck of the guitar the two connected and I have had no prob since. Try everything I said....but if you're lazy try holding in the button on the receiver for at LEAST 10 secs. Hope it works.