i’ve connected a 4TB WD Drive (about 3TB of media on it) to the WDTV [Firmware 1.02.17] without any issues
advice when using USB Connected Storage … always “Eject” the USB HDD (press the “Eject” button on the Remote Control)
If you are having any issues with the HDD … the first thing to do
Connect the USB to your PC and run a chkdsk … after doing so, “Safely” remove the drive and try again on the WDTV
example: running chkdsk command line on Win7
http://community.wd.com/t5/WD-TV-Live-Streaming/Another-hard-drive-not-recognised/m-p/843149#M34965