The first movie I tried to play after updating to 1.08.17 in Netflix was Open Season 3. The movie has some crazy ghosting/pixelation going on. You only have to play the first minute or two and please let me know if you get the same. Other movies I have tried so far play fine. If anyone could report back and let me know how it plays for you on the SMP I would be most appreciative.
EDIT: Just tested this movie in Netflix on a Boxee Box and it plays fine.
EDIT2: My box is wired and I have a 15 megabit connection to the internet
EDIT3: Other movies effected are The Secret of Kells and Open Season 2
If you run into this issue please upvote at http://community.wdc.com/t5/WD-TV-Live-Streaming-Issue/Netflix-pixelation-ghosting-on-SOME-titles/idi-p/404322