My My Book Essential is stuck

No.

The software should acknowledge the files already backup as long as you were using 2.1 or 2.2 ( latest ) version of Smartware.

The software is available for download on the following link:

http://www.wdc.com/wdproducts/wdsmartwareupdate/index.asp

Edit:

While researching your issue found this particular thread:

http://community.wd.com/t5/WD-Software/SmartWare-does-not-back-up-files-in-My-Passport/m-p/626835#M7436

We are currently investigating this issue.

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