WDTV live produces "unable to create media library...." error message

Yeah, that’s probably best – the Live is not for everyone.

However, no matter what you do, I’d *strongly* suggest you have your data backed up somewhere.  Drives *always* fail – like tires it’s not a question of if, but when.  If you don’t mind losing all that you have, then don’t worry about it.  Otherwise – do it today and not tomorrow.