Network file playback issue since recent firmware update

Prior to the most recent update I was having issue with higher quality files playing (MKV,VOB,MP4)

Now it appears AVI files (XVID,X264,DIVX) are having this problem now, and high-quality files play fine.  I can play an Bluray file (M2TS) that VLC says is 10430kb/s, … but even cartoon AVIs won’t.

What happens is the initial buffering arrow displays, then the video will begin to play…  then in a few seconds it will go in frames, or play in slow motion with sound.

I am using 2 Seagate NAS’s, and I heard there may be issue with these.  NAS 220 (3tb) and NAS 440 (9tb)

I am using a Netgear 24-port gigabit switch, entry-level commercial grade.

Any ideas?

I have a few WDTV’s… so I was thinking of using 2 at once… and rolling back the firmware.  High-bitrate on 1, AVIs on other.  But that’ll be a pain.

Do you have the WDTV live streaming or the WDTV live? Did you check if the problem also happen when playing the files from a USB memory/