KAD79 you are the man!
Your solution was spot on except that the nic card on the WD TV Live is not working anymore so I couldnt get to the webend. I had installed wdlxtv however that hadnt fixed the issue.
However, not wanting to give up, I did some research and found that I could add a wireless usb adapter to the unit. However not all wireless dongles are supported. Then someone mentioned on their blog that those with ralink chips are good. I remembered having one just like that … and viola! I was connected.
I went via the webend to the Config and then reset everything (downloaded the backup before doing this ). The restart after that took abit longer (4min with NO SIGNAL shown on the tv screen) but after that I could play my avis and mp4s … yay!!
Too bad the NIC is still busted but with the wireless usb … I am almost all as I was previously
Thank you thank you sooo much
PS. Wish wdlxtv would be able to crack the encryption on WD TV Live Streaming (gen3) so that I could get it on my friends unit