WD plays xvid only after a mpeg file is played on it

I have encountered a strange issues with WD TV live plus.

If i turn on my WD and try to play a xvid file it fails saying invalid media. 

If i go and play a mpeg file , then  i can go back play the very same xvid file.

Has anyone else encountered this irritating and strange problem.

SAme problem here after applying 1.04

Also if i use the down key on a blueray mkv file the system hangup and i need to remove power to restart it correctly 

Same here, although it sometimes also works directly. It seems to be related to this problem: