I have been using media sharing through Windows Media Player 11 and it works great.
All you need to do is connect the WD Live to your network and turn it on. Make sure you get an IP.
Then on you PC lauch WMP 11 and go to tool options Library tab.
Allow the WD LIVE TV to have access.
Cofigure sharing and then select the folder you want to share.
Its that easy.
I think network shares more secure but you need to supply User/pass info.
And TVersity is more for encoding on the fly.
Ive been using this method for years with my xbox before getting the Live and now with the live I can stream HD content beautifully.
And you will be back to this board when you find the list of files that WMP will not pass to the WDTV. If you do not have a network shares user / password then you don’t need to supply one, you just use the default and click OK.
TVersity can encode or not depending on what its streaming to, it was designed for units that can only play a small range of files, which does really apply to the WDTV.