I owned the first generation of the Live TV and it is still working well, actually better then I tough after trying the new one. Thing went smoothly with the setup and the interface is surely pretty but compare to the simplicity of the first gen, it is too cumbersome, complicated et sluggish to my taste. The unit itself look of lower quality also. Now the real problem came after connecting my 2TB USB drive. While the first gen handle it flawlessly, this one start giving problem immediately. Movies will suddenly abort or freeze the player. Had to restart it many times after the USB disconnect will never work. I tough that it corrupt my drive (which I would have killed myself considering to amount of media (1.5 tb videos) time spent on downloading stuff etc …) but an external Windows check came up OK. So end of test right here and returned to the store. While I think WD make the best media players, I never use the net (edited) ever, so IMO they should return to the basic and provide as an option, a bullet proof mp player only, with lower price probably. That`s what most of us need anyway.
Even if the SMP is not perfect, this is not the way that it should work, maybe your unit was faulty.