So I got my Biggie on and gave this darn thing one more chance - as a test I swapped out the router (D-Link DIR-655 hardware version A4 with 1.34NA firmware) with my DD-WRT router (Linksys WRT54G v2 with custom firmware DD-WRT v24-sp2 (12/18/09) Standard, SVN revision 13491M VINT Eko) and BAM! No more connection drops! No more bringing down my router and network.
So you guys were right, the D-Link router [or firmware] isn’t liking what WD TV Live is trying to do which is weird because the DIR-655 ison the list of supported routers. Anywho, the Linksys router isn’t wireless-N so that’s not a permanent option. The D-Link performs superb outside of this WD TV Live issue, so I’m still not getting rid of it. Plus the WD TV Live chokes on most of my MKVs video files (tested under wireless-N/D-Link for the 5-10 minutes it was working), so I guess I’m still giving up on it.
Interesting find though.