Can't get past yellow light when setting up MyBook Live 3TB for the first time

I have connected the drive as shown in the instructions. CD is unable to locate the drive on the network. I have tried from a Mac (running Lion – I know about the Time Machine issue; this problem is just basic setup). I have also tried from a Win7 computer.

On the back of the drive, I have a solid yellow light and a blinking green one, which would seem to indicate a conneciton. On the front of the drive, I have only a solid yellow light.

Unable to access “http://mybooklive” from any computer on the network. MAC address is not listed in the router’s DHCP client list.

The network is wireless; I have tried plugging my MacBook via Ethernet cable into the router, and repeating setup and troubleshooting, but with no luck.

What should I try next?

The lights on the back of your My Book Live on the Ethernet port are the link light (amber) and activity light (green).  You’ll see these on your computer’s Ethernet port too, although the colors can be different.  The link light means you have a sound electrical connection via Ethernet and the activity light flashes whenever network traffic reaches the port.

The light on the front of your My Book Live is a status light.  It shows amber during bootup and turns green once it has finished booting.  If your My Book Live never changes from amber to green then it means the unit is damaged and cannot boot.  Since this happened right out of the box, return to your place of purchase and exchange the drive for a working one.  I apologize for the inconvenience.  The good news is that you should come home with a fully-functional, working drive and it should be smooth sailing from there.

I have the same problem… the thing is that mine was not out of the box… i have A LOT of info there and i dont know what to do.