WD should truly address issues related to MP4 H.264 playback.
I use HandBrake.
With B-Frames setting set to 2: audio is getting dropped after a minute or so of play time regardless of number of audio tracks included.
With B-Frames set to something other than 2: Audio is getting out of sync with video when you switch from one audio track to another. File plays fine with one audio track.
Add to it lack of support for Chapter Markers. If markers are included, the name of the last chapter is shown as a subtitle.
If I H264 encode using MKV container, all these issues disappear and playback is perfect regardles of B-Frame setting.
I personally prefer MKV’s BUT sometimes I need to encode with MP4 container.
Are other people running into such issues with what appears a B-Frame bug in the way WD TV Live handles MP4 container?