I have the same issue with being unable to setup my WDTV Live Hub. When trying to access the network setup, I get a constant “loading” screen with the ethernet cable plugged in. If the cable is not plugged in, the unit boots normally. This started a few weeks ago with firmware ver 3.12.13
I have followed the instructions in this thread, downloaded firmware ver 3.11.10, renamed it to ver 4.11.10 and successfully downgraded the firmware on the WDTV media hub. But once I plug in my ethernet cable, the unit is stuck in the loading screen, and does not load the network settings. I have also tried a new ethernet cable, connected directly to the WDTV Live hub from my modem.
Any ideas to help me? Should I be using a specific downgraded firmware version for this specific issue? Also, have considered trying a USB wireless adaptor, any recommendations for newer USB wireless adaptors that are compatible with the WDTV live hub? WD publishes a list, but I suspect its quite old