I am not an expert, and in fact I do not yet own a WDTV Live - - just strongly considering buying one since I had a bad experience with the competitive product Seagate FreeAgent Theater+. Anyway, as I said I am still learning about this stuff but I wanted to report that I have had good experiences with making back up copies of DVD’s to “ISO” file format. When I rip a DVD to the folders / files structure, which it sounds like you’re using and I used this at first as well, I usually get ~4 VOB’s per full length movie, since the programs I’ve used breaks them into 1GB chunks. The ISO is one big “image” file. I have had good success running DVDFAB + IMGBURN, which if you install both, then DVDFAB will more or less automatically, with “one click”, rip the disc and create either the VOB’s or an ISO. I also have noticed DVD-Shrink has an ISO output option but I am just now testing this. It has more options if you want to control / select only certain parts of the disc to back up, and also compression options seem to be more advanced. All the other free/shareware ripping programs I’ve tried either don’t output an ISO in one step (you have to rip the disc then come back later and run another “burner” program) or if they do it’s only available with their paid version of the program. If you have a bunch of VOB’s already, you should be able to run IMGBURN by itself, pull in one set of VOB’s or just one VOB I suppose, and output an ISO, to test this approach.
I just checked and the WDTV Live does not list ISO’s as one of the file formats it supports. I posted a question to this forum to see if this format is supported.
Not sure if my post helps but hope so.