In the Release Notes for 1.04.22, the stuttering issue with playback of .VOB files over network share is finally documented. Contrary to other posts made in the past few months, WD has officially stated that there is an issue.
FInally, there may be a light at the end of the tunnel.
in my case VOBs were already stuttering since the release of the last 2 or 3 firmwares.
so far my workaround was to write the VOBs into a DVD ISO-file, then they playback fine. i hope this helps as temporary fix for anyone who didn’t know yet.
It takes about 10 minutes to convert each DVD into one MPG container file.
Using Serviio 0.51 media streamer, I can stream the MPG file from a Seagate 1TB USB hard drive attached to an emachine N450 Atom notebook and stream over a cat 6 cable with no choppy video.
Another method is using PgcDemux to demux the VOBs and remuxing it into an mkv using mkvmerge in mkvtoolnix. The WD TV Live should be able to play it fine (at least it did on the couple of DVDs that I tried it on).