Well, I want to chime in. I am having a similar problem. I am using a My Book 3tb drive formatted HFS, have updated the firmware and installed all the latest software.
My drive is NOT being recognized by the WD Smartware, and there is no option to set the drive up in the WD Smartware as it is greyed out. The drive works fine otherwise, but the main problem I have is that if WD Smartware doesn’t work, the security feature doesn’t work. When I go to WD Utilities application it sees the drive, and when in the WD Security application it allowed me to create a password for the drive.
No matter what I do, eject/remount, reboot the computer, or disconnect (physically) the drive, there is no security in place on the drive.