I had a long phone chat with an excellent WD tech support guy. Turns out it was a router setting that kept my app from accessing the Live Hub, giving this error. IMHO, it's a mistaken error code. The app is connecting to the internet fine, it just can't connect to the Hub.
So, we put the Live Hub's IP address in the rounter's DMZ, and also disabled UPnP and viola, it connected.
it took about 10 emails back and forth to tech support, where they were full of nonsense ideas, and then I posted to the WD facebook page about my frustrations. I got a call on the phone the next morning and the problem was solved quickly and efficiently.