The same just happened to me (after a so good service of 16 months).
Try this: go to setup (in the given CD) then, search for it, if found (status BAD) go to utility, then try to reset to factory default. You will not be able to recover data (I did try), but at least you can use it again.
Anyone, can suggest why this has happened to me. I notivce this happened after I upgraded the firmware (possibly, if it is true - what a nuisance). Please give me hints … I do not want something like this happens to me again.
Otherwise WD Mybook Live really ROCKS ! - it is cheap and reliable (I hope). Better if it can be connected to wifi dongle or has wifi and fixed LAN on it already
Thanking you in advance - best regards, Ben
