A wired connection is my default. I also tried connecting a wireless USB adapter but the menu only showed wired options not the wirelss menu that the manual shows. I did update to the latest firmware through flash memory , whic was recognized by the WD live.
Back to the wired connection. I've tried automatic and manual. The automatic always fails and gives me, either all zeros or the wrong IP addresss (169 something). In manual I've put the right IP adddress (22.214.171.124 - 4th device on the network), Subnet mask (255.255.255.0), Gateway (192.168.0.1) and DNS (192.168.0.1). These are the numbers that work with my laptop, desktop and everything else I have.
When trying out the connection the machine accepts the IP adress but goes on an endless loop trying to recognize the DNS.
Like I said, I am about to return this. I think that WD is going the route of HP, selling devices that look great on paer with great features at a really low price but you get what you pay for. The cheap HP motherboards overheat, the connections loosen and you end up with a brick.
The usb adaptor will only work if it is on the approved list and compatible with the WDTV Live. The internal menu will not show if you don't use a recognised adaptor.
I assume that you mean (192.168.0.4 - 4th device on the network) not 126.96.36.199
After upgrading the firmware it is best to:
reset via the side button with the unit on (use a paperclip)
reset to factory defaults via the internal menu
unplug the unit from power for some minutes (not seconds)
Do all 3 before using the unit.
This sometimes cures problems after upgrading.