I updated the firmware that was released yesterday for the WDTV Live HUB to Release 2.02.19 (12/1/10) and the audio crackling noise still exists (of-course it was never fixed in this release according to release notes but I just wanted to let WD know)
Here is the Media information that can possibly give the developers some clue about the loud cracking noise found in MKV files and or MP4 files with OGG Vobris Sound,
Format : Matroska
File size : 60.6 MiB
Duration : 3mn 19s
Overall bit rate : 2 553 Kbps
Encoded date : UTC 2008-05-26 05:14:43
Writing application : mkvmerge v2.1.0 (‘Another Place To Fall’) built on Aug 19 2007 10:46:59
Writing library : libebml v0.7.7 + libmatroska v0.8.1
Video
ID : 1
Format : AVC
Format/Info : Advanced Video Codec
Format profile : Main@L5.1
Format settings, CABAC : Yes
Format settings, ReFrames : 8 frames
Codec ID : V_MPEG4/ISO/AVC
Duration : 3mn 19s
Bit rate : 2 387 Kbps
Width : 960 pixels
Height : 720 pixels
Display aspect ratio : 4:3
Frame rate : 23.976 fps
Color space : YUV
Chroma subsampling : 4:2:0
Bit depth : 8 bits
Scan type : Progressive
Bits/(Pixel*Frame) : 0.144
Stream size : 55.6 MiB (92%)
Writing library : x264 core 54
Encoding settings : cabac=1 / ref=5 / deblock=1:0:0 / analyse=0x1:0x131 / me=umh / subme=7 / brdo=0 / mixed_ref=0 / me_range=32 / chroma_me=1 / trellis=1 / 8x8dct=0 / cqm=0 / deadzone=21,11 / chroma_qp_offset=0 / threads=12 / nr=0 / decimate=1 / mbaff=0 / bframes=3 / b_pyramid=1 / b_adapt=1 / b_bias=0 / direct=3 / wpredb=0 / bime=0 / keyint=250 / keyint_min=25 / scenecut=40(pre) / rc=2pass / bitrate=2387 / ratetol=1.0 / rceq=‘blurCplx^(1-qComp)’ / qcomp=0.60 / qpmin=10 / qpmax=51 / qpstep=4 / cplxblur=20.0 / qblur=0.5 / ip_ratio=1.40 / pb_ratio=1.30
Audio
ID : 2
Format : Vorbis
Format settings, Floor : 1
Codec ID : A_VORBIS
Duration : 3mn 19s
Bit rate mode : Constant
Bit rate : 160 Kbps
Channel(s) : 2 channels
Sampling rate : 44.1 KHz
Compression mode : Lossy
Video delay : -42ms
Stream size : 3.80 MiB (6%)
Writing library : libVorbis 1.1.1/1.1.2 (UTC 2005-03-04)
Thanks! for looking into this, hopefully it will get fixed in the next FW release.