Hello,
1-I haven’t seen any widespread issues with the latest firmware (2.42.02), you can check the main thread for the firmware release.
2-You can try using the supported version of Twonky media server or the latest DLNA server, to see which one works best for you.
http://wdc.custhelp.com/app/answers/detail/a_id/5735
3-You can check the My Book manual for more information.