After upgrading to the latest firmware, album art (in thumbnail view of albums) is not visible anymore. It was shown in the older firmware version (up to 1.01.24). But not anymore. I have reset the device but that does not help. So, in summary the file Folder.jpg, which I included in each folder that also contains the tracks (flac files in my case) of a music album is not shown in thumbnail view. In older firmware version this was not a problem!! The album art that is embedded in the flac files is correctly shown. Can anyone help?
Look on the root of your device where you have your media stored, you should see a folder (the first one, actually) called .wdtv
Delete that folder, restart your WD Live or whatever you have, and let it rebuild the database. I had to do this a couple times while messing around with my WDs =)