I’ve bought WD TV Live 3 days ago. It was updated by last firmware ( 1.02.21). It was connected to my home theatre by optical cable (Toslink). In WD TV Live Setting I’ve changed audio output to “digital”. Home theatre play audio well but TV shows message “Unknown audio signal. Please check the source” because WD TV Live sends audio stream by toslink and by HDMI but my TV (Sony 40 BX 401) don’t understand the input audio stream.
When I choose “stereo” output in WD TV Live Setting my TV plays sound well.
I suppose WD TV Live should not output audio by HDMI when Toslink is connected.