A member originally posted on Mar 30, 2012 that they were having this issue.
I was having the exact same issue myself. I found the answer but couldn’t reply to the original thread unfortunately.
http://community.wd.com/t5/My-Book-Live/Unable-to-discover-My-Book-Live-Mac-OSX-Lion/td-p/381059
"Brandnew My Book Live 3TB.
Power plugged, ethernet cable plugged.
Laptop (MacBook Pro Lion) connected to router ethernet port 1. (Wireless turned off)
My Book Live connected to routher ethernet port 2.
Bottom light at the back is amber color, front light is greent.
Run My Book Live Setup.app comes from the CD, > Discovery > failed, not found.
What goes wrong?
Thank you in advanced!"
Unplug the ethernet cable from your MAC computer. The installation is able to find the device over wi-fi but not when the LAN is connected. Bizarre!
