WD TV Live Plus w/ WD hard drive. Movies disappear?

WD Legacy Products WD TV Live & Live Plus
2

Look at http://community.wd.com/t5/WD-TV-Live-Live-Plus/WDTV-Live-random-avi-files-being-converted-to-folders/td-p/544999

Sadly there is no fix except downgrading, which reveals other problems