Now everyone has had this problem and i’ve searched the internet forever, changing the video settings to component on the WDTV live either doesn’t work or settings reset to composite.
I remember changing to component my screen would turn green or not boot up and I would have to use an HDMI or composite cable so I could get a picture again.
Anyway, recently I got another streaming device, moved my newer WDTV to another tv and my old gen 1 WDTV was not doing anything. I said to myself let’s try this again. One key note I remember reading is the WDTV device cannot determine if the output to the tv is component or composite, what did I do? I plugged both component and composite cables into the back of my older Sony LCD tv, adjusted the setting to component (720p YVU, NTSC seeing I am in Canada) and turned off the tv. The restarted the unit, I got a screen the I got no signal and within 20 seconds it was on. I checked the video output and it said component 720p! I changed it to 1080i and turned off the unit. I turned it on and after 20 seconds of the unit shaking hands with the tv the settings saved at 1080i!
Well after all these years (several years too late?) I finally got this working for me. Maybe it will work for you?
Edit" The composite cable input just needs to be inserted into the WDTV, doesn’t need to connect to tv, receiver etc