I’ve had my WD Live ver3 for since Nov 11. I have the latest firmware. I was interested in your post because I have a similar problem with Netfix. I really notice it while watching the AMC show “Mad Men” The show gets really dark, then will lighten a bit, but in general every episode is darker then other shows. And it’s not the whole screen, it’s just the dark tones, and shadows in the show that are really black to the point where I can’t see detail’s. This issue has bugged me a lot.
I’m watching on a standard def TV, using the (I hate to even write it) composite cable. No HDMI for me. It’s only Netflix that has this issue. All other channels work fine.
As a side note I installed PlayOn on my PC and was able to get it up and running on my WD live in 5 min. It has Netflix so I logged into my account and tested the same “Mad Men” show and it looks great running through PlayOn. So it has to be something to do with the way the WD Live process’s the Netflix stream.
I sure would like any feedback if others are having this problem also.