Is the first time this problem happens with my WDTV. Today i was trying to use Netflix and Youtube and got error. When i checked the the connection status in the WDTV it says
Ip adress with a green check mark, DNS and Internet Connection with red x.
I tried restoring to factory the device and the router, but none worked. The strange thing is that i can send files from my laptop to the connected hard drives and usb flash in the WDTV ports.
Have you tried setting up a static IP on the media player? That way you can manually put the DNS numbers and check if it can connect to Netflix and Youtube.