I tried that and it still didn't work. However, after 6+ hours of trying to get it to work I checked my cable and, although it fit into the Ouya perfectly, it wasn't a micro usb to usb cable! Go figure!
I was having the same exact problem and it took me 6+ hours to figure out what was wrong. Turns out I had a cord that fit in perfectly and all into the Ouya, but wasn't a micro usb to usb cable.