I updated the WDTV LS to the newest firmware (1.04.12) after having issues with the previous version, as well. I have no NAS hooked up and am not connected to any wired/wireless network. The unit boots up fine and I can see the local USB drive with the media files. When I start a movie, it works as it should but after a certain period of time (>15 minutes or so) if I stop the movie, the sound continues playing but the video does as it should in going back to the previous folder. I can then navigate around as normal but cannot start another file as the audio continues from the previous file. If I try to get back to the original video, it appears as it should but the circular spinning disk access symbol remains. This also happens if I finish a video and try to select another (without the sound obviously) video, the spinning disk just hangs and nothing works. If I power down and restart, it works as normal until the issue starts over. This issue happens with all types of usb media. I am using an HDMI connection.
This issues makes it unusable as I have to reboot every time I watch something.
Please help! Thanks.