Question about MKV codec from PC

An mkv file plays just fine on my PC which is attached to the network the the WDLive is on. I have Klite codec installed on that PC. When I try to play that mkv file on the WDLive is tells me that this FORMAT is not supported. Shouldn’t the WDLive be using the same codec that my PC is using ?  

Of course not. The WDTV uses it’s own codecs, not your PCs… (That is, of course, unless you’re using a transcoding media server, but that’s a whole other subject.)