Have a look at this thread for the answer.
http://community.wdc.com/t5/My-Book-Live-Duo/MyBookLiveDuo-backup/m-p/393065/highlight/true#M706
This “backup” folder is the one the WD uses to store the backups, so why is is visible is anyone’s guess!
I think it is annoying to see it, but not able to “easily” access it, and I’d like to hide it from view, but have not found a way to do this.
You can browse to it this way, though, if you want to explore the backups …
If its IP is 192.168.1.1, try this:
smb://192.168.1.1/smartware
then open the Finder window …