My problem is solved. 
I have returned my WDTV Dead today to my local retailer and got a new WDTV Live in exchange, no questions asked.
I was lucky because I was their only customer that reported the malfunction so they still had a couple of WDTVs in stock.
The firmware on it is 1.01.10 and I have no intention of upgrading it for now - too afraid!
I have a constructive idea for WD: they should really consider adding an off switch for automatic updates after this disaster. Even better, they should disable the internet updates by default and add an ON switch for it. :lol: And I don’t mean no software switch but a hardcore hardware switch in the middle of the unit, preferably red with big yellow/black warning sign :
“You are about to activate the automatic firmware update option. Are you mentally ill or just plain stupid!” :lol:
But seriously, we all deserve an explanation and an apology, especially those users that long past their return period and have to go with RMA and most likely refurbished units… :angry:
And we also deserve a decent firmware update with DVD / BlueRay menus and movie sheet enabled like in b-rad/LaurentG homebrew version - we all know it can be done so no [text deleted] WD - Just Do It!
Remember WD, now YOU owe US this! 
