Firmware update 1.02.17

i’m using an attached USB and 1.02.17 finds all of my MP4’s and plays them fine.

Have you tried a factory reset ?  or if still no go, yes, you can reinstall the firmware … here’s my guide

http://community.wd.com/t5/WD-TV-Media-Player/Incomplete-firmware-upgrade/m-p/835397#M1689