You don't actually have to have SmartWare to use the drive. If you prefer, you can uninstall SmartWare and use the drive like any other external drive.
I am aware that I can use the drive as a normal drive, as I mentioned in my original post:
...The drive is working fine after the software fails, and I am still able to continue copying files manually over to the drive without any problems. It's just the SmartWare that's bugging out...
I am genuinely appreciative that you, as a WD spokesman, have responded to this dilemma. But I am also a little disappointed at the content. If the only solution from WD for the problem is to not use the software, then that's unacceptable. At the point of purchase I made my decision based on the spec's that the MyBook listed, including the ability to use the supplied software.
I sincerely hope that the dev's at WD take this problem seriously, as I am not the only one suffering from it.
On a side note (and as a potential bug report, should you wish to notify the programmers) I have noticed the same software failure when I am updating other system drivers. Notably; my nvidia display drivers. About half way through installation the WD software pops up the aforementioned error. I reproduced the problem a total of 4 times, with exactly the same result each time. I hope this helps...