That behavior is known to happen whenever WD stops offering a configuration-file necessary for the services.
A few days ago WD stopped offering that file, causing WDTVs to repeatedly request the file every second, which due to a bug in that feature cause the lockups and slowdowns.
Apparently WD fixed this problem a short while ago, and now it’s working properly again.
See Cause Freezing found! WD, PLEASE PUT THIS SITE BACK ON LINE ASAP! for more information.