It never was to do with SAMBA configuation issue, But it was to do with Link Layer Discovery Protocol
WD TV LIVE HUB somehow gets upset if any device is broadcasting itself with this protocol and will cause playback errors with Media files are accessed from the NAS device.
See the post here http://community.wdc.com/t5/Firmware/Playback-of-VOB-files-over-network-share/td-p/186538
Hope this will help others trying to have compatibility with Seagate BlackArmor 440 NAS