SmartWare doesn't partition anything, and the My Book Live doesn't use Windows file systems anyhow, so you're not running into a limitation there. What's actually happening is that your Windows Vista computer is not seeing the My Book Live over the network. We can tell this is a problem with the computer's configuration because the other computers can see the drive properly.
Use the setup tool on the CD to try to troubleshoot your drive. Once your My Book Lives shows up when you hover your mouse over the WD Quick View icon, you'll be all set. I'd specifically make sure your firewall isn't blocking uPnP, Windows File Sharing, or network discovery services.
Steps 1, 2, and 3 from the knowledge base article below should help you troubleshoot your computer once it fails to detect the drive.
KB5724: How to install a My Book Live NAS drive on Windows or Mac OSX
If all else fails, please feel free to contact WD Support. While this is a problem with the system in particular, Support might be able to find the incorrect setting.