WD TV HD Gen 1 Plays file but becomes unresonsive with some drives

While trying to move my files to a larger drive I ran into this problem:

First, the same files (copied from WD to new HDD via computer) would play but not show the video just play the audio.  Checked to make sure that it was not a file issue by being able to play the same file on the origional drive…that worked just fine.

  Upgraded to the newest firmware and got a higher end USB cable and the files will play now and show video but the unit becomes unresponsive to commands via remote.

Both drives are formatted FAT32 connected directly to the 1st GEN WD HD TV via higher end USB cables.

Has anyone else had this issue before?  Is it a drive problem?  Or a file problem?

What else can i try to get this work work properly?