Other users have reported a similar issue but on the WD TV Live SMP.
What model do you have?
The issue is currently is under investigation for that other model.
An user on this thread has reported that unit works fine after a firmware downgrade.
http://community.wd.com/t5/WD-TV-Live-Streaming/Freezes-with-new-firmware-2-01-86/m-p/737246