If you get this error when trying to connect with your network, do the following:
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Do all of the basic debugging steps: Cycle power on your WDTV Live, cycle power on your router, make sure other devices work on your network, make sure another device works with the same port, wire, etc.
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If it’s still not working, you need to do a manual network connection. Go to the setup menu, Network connection, and select Manual.
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On a Windows PC connected to your network, open a command window (type “cmd” in the Windows search box).
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Type “ipconfig” in the command window.
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Go back to your WDTV Live. It is asking for four numbers. The IP Address is the same as the one that came up in the screen of info when you did ipconfig EXCEPT you have to change the last number. You probably got something like 192.168.0.4 from ipconfig. Leave the first three numbers alone and change the last one. Make it in the twenties, in case you have other things on your network. In this example, use 192.168.0.27.
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Subnet Mask is exactly the same as the one that ipconfig told you. Enter it exactly. It is probably 255.255.255.0.
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Gateway is also exactly the same as the one that ipconfig told you. Enter it exactly.
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DNS Server is the same as Gateway. Enter it exactly.
This should connect your WDTV Live to your network, and to the internet. I am posting this here because I just spent most of the weekend figuring this out. Also a few hours this morning with WD Level 2 tech support. Hopefully this will solve this problem for someone else in much less time.
Cheers.
Sticman