"Set Up Drive" greyed out in WD SmartWare 1.2.2.5

WD External Drives External Drives for Mac
4

Had this same issue forever. Just solved it.

You need to have it connected via USB while installing the software. I would recommend doing a complete uninstall (after downloading the 1.2.2.9 update) and then reinstall using the 1.2.2.9 update while connected via usb. You can then set the drive up via firewire and only use usb when you want to change the drive settings.

Hope that helps