if I play a DVD which is in my PC’s DVD drive, the audio mutes after a few seconds, and the video is stuttering.
The other way round is working, i.e. if I use “Media Player Classic Home Cinema” on my PC to play a DVD ISO file which is on the USB drive connected to the WD TV Live Streaming Media Player.
In both cases, the video data is transferred over WiFi (54 MBit/s). In the first case however, there are transferred 1.4 MByte/s (= 11.2 MBit/s), in the second case only 0.4 MByte/s (= 3.2 MByte/s) (according to the Network graph of Sysinternal’s Process Explorer). So the bandwidth shouldn’d be the bottleneck.