Frustration with WD TV Live - no wireless and no content source

Am now at my wits end.  Bought a wireless WDTV live (not the hub) about 4 weeks ago.  Replacing an old WD TV 2.  Set up went smoothly and we enjoyed the box for a few days, but from the start is has been unstable - hanging in the middle of shows and needing a hard reboot, very very slow to access media and hanging while navigating especially in the Services part of the menu.  We have it pointed to an external 3Tb WD MyBook hard drive, connected by USB to the develop, and apart from the Services, do not have other media libraries at this stage.  We have watched content from the Australian ABC, so know that the wireless part was working.

Tonight, while watching a show from the hard drive, i again hung (hanged??) in the middle and came up with some form of content disconnected message.  I attached the hard drive to my macbook and ran disk utility - verified fine, and no repairs found.  content runs well on the mac from the hard drive.  Rebooted, and the disk spent forever trying to compile the media library.  i hard rebooted again (after again checking to see if i needed to repair the disk), and now have a system that cannot find the attached disk (or any media) and also cannot find the wifi, although it remembers the previously entered details.  ive tried several times, it can see that there is a strong wifi signal, but wont pick up the IP address etc.  as i have several other devices using the wifi successfully, i know its not the router.  resetting to factory settings does nothing.  firmware is 1.11.4  (does that sound right?)

at this point im ready to throw the box out the window.  i am not a technical guru, but this is pretty poor from what seems to be touted as the best on the market.  any advice welcome before i walk it back to where i bought it and demand my money back in a loud voice to let other customers know not to purchase one.  :(

Not sure what this means:

“We have it pointed to an external 3Tb WD MyBook hard drive, connected by USB to the develop ,”

Exactly what is is the disk format?  If HFS+, it should not be journaled.

If WD still won’t recognize it, unless you have something like Disk Warrior to try more repairs, and since you have already reset the WD, I would regrettably suggest erasing and reformatting the drive.

The wifi issue is puzzling.  If you have the settings right, perhaps you could ask the store for an exchange?