Netflix quality very poor, no HD?

I owned a Logitech Revue (Google TV) up until about a week ago.  I returned it because local file support was very poor.  I heard good things about WDTV Plus as far as local file support, so I bought one.  So far local files play great,  plays every file I have put to it.   Netflix on the other hand is very poor quality compared to the Logitech Revue, my Xbox, and my laptop.  Does Netflix on WDTV+ do HD?  Is there a setting that I can configure to get better quality?

Yes, it does through 1080p. Are you using a wireless dongle on it? Any chance you could wire it and compare to it to using the wireless? As your Revue and laptop work fine, I imagine it is safe to rule out the internet speed.

Also check your NetFlix account settings on the NetFlix website.   You can change the quality setting there.

I was actually using the built-in wireless on the Revue but fo the WDTV+, I have it connected directly to the router.  

You are connecting with HDMI, right?

Netflix won’t allow WDTV to play its HD streams over composite or component… if you’re not connected via HDMI, then WD is legally obligated to downgrade the signal.