Hi, all three of my legacy Lives (2 Live and 1 Live Plus) do this occasionally, mainly on internet connected playback like Youtube or Flingo. I don’t recall it happening from USB connected drives, but Power cycle restart is the only remedy I’ve been able find. Since there will no longer be firmware updates, quashing any hope of a fix, I’ve accepted having to just put up with the occasional need for a power cycle reset. Since I really like these old players, and being an old-school hardware hacker, I’ve built a couple small boxes that let me cycle the power via the Live remote, saving me the hassle of having to dig the player out of its nest in my TV setup to pull and replug the DC cord. I’ve made good use of these already, having to reset the players over a dozen times in the last year.
I suggest using a commercially available slave socket power bar and plug your TV into the master socket with the Live player adapter in one of the slave sockets. When the Live freezes, turn off the TV for a few seconds. Just beware that some of these controlled outlet bars have a very low power detect threshold, with some TVs OFF idle power enough to trip the slave outlets ON (I have Toshiba TV like this). Find one with an adjustable master detect threshold; I think APC make these. Another option is a remote controlled outlet switch, but they’re more expensive than master-slave power bars, and it also means you have another remote lying around (to lose) in your TV room.