I have been playing with this for 3 days and could not get my desktop to connect. My laptop was able to connect just fine and stream video. The weird part was that I could use my laptop to stream videos from the desktop from a mapped networked drive and that would work on the device. Both Laptop and desktop had windows 7 Ultimate, only difference that laptop is 32bit and desktop is 64bit.
I could not figure for the life of me why one would work while the other would give me either “No media in this folder” or “There was a network connection error”. After days of playing with setting and comparing the 2 systems and both systems running the same configuration network wise. I took a look at the physical parts of the network, Laptop was running wireless while the desktop was running wireless and wired.
After removing the wire from the desktop everything started working perfectly! I was completely stunned as to why this was, but it worked. The WD TV live is connected through a cable.