pfc49 - Are your PC's still connected physically with an ethernet cable to the network? I've found that the backup does not work at all if I am connecting via WiFi only. Apparantly this is a known issue.
Otherwise, I am having a simiar issue: new files are not backed up 'continuously' after I create them.
Confirm computer is connected with ethernet cable to the same router the MyBookLive is connected to.
Confirm MyBookLive is on and connected to network (light flashing)
Confirm I can connect to MyBookLive shares via PC
Confirm Backup is set up and is configured to be "Continuous Backup", with default backup plan enabled.
Create a new TXT file in the "Documents" folder using Notepad.
Wait - WD Smartware says "Backup accomplished successfully" and file count matches.
Expected Result : the new TXT file shows up in the corresponding "Documents" folder in \MyBookLive\Smarware...\Documents" share.
Actual Result: The new TXT file does not show up in the Smartware backup share in the "Documents" folder.
I have tried rebooting the PC, rebooting the MyBookLive, and Disabling and then re-enabling the backup via the WD Smartward application.
Firmware: MyBookLive 02.42.02-012 : Core F/W
WD Smartware: 2.1.0
OS: Windows 7 Home Premium SP1