Thats an interesting statement from Syabas concerning youtube on the Popcorn Hour:
… To be clear, Google has changed YouTube’s terms of service to exclude Set Top Boxes and other devices, and, as a result, Syabas has been asked to remove the content from their platform…they(Google) are asking all over-the-top device makers that are currently connecting to YouTube content through its APIs to take down the service…
Read the full text here
That might explain why there are problems with older youtube accounts.
Either Western Digital is one of those strategic partners, and the problem is on the google side,
or they are not, and are in the middle of getting kicked out, or in negotiation with google.
I think the first case would be better for people wanting to use the youtube feature of the wd tv live.
In both cases i wouldnt expect a very quick fix.
Looks like there is a lot of money behind this.
[edited to fix spelling error in thread title]