Make sure you go into settings and change the way it lists your movies to list mode instead of thumbnail. I just bought one a week ago and posted this review of it on Amazon:
This is a great little player for the money, it has played back all my HD movies in .mp4 and .mkv format just fine. It only had trouble with some Gundam anime that was in .avi format, it was artifacting and freezing the video while playing. VLC player on my computer played the Gundam anime just fine, but I read from other people this player can be picky with .avi files for whatever reason.
Some things you need to know, when you first get this make sure you connect it to the internet and update it. Also, go into the settings and change the default way it displays movies from thumbnail mode to list mode. This will make it much easier to browse movies, especially if you have an external hard drive connected that has tons of movies. Also, when watching a movie and you want to go to a part deep in the movie, hit fast forward and then while it is fast forwarding hit the next button and it will advance 10 minutes. I didn't know that until I read the manual. This product does not come with a manual, so go to the western digital site and download it and read it, you will learn what every thing does and how to work the media player better.
***********IMPORTANT***********If you plan on using network shares to access your media, you need to probably uninstall Windows Live ID Assistant. I tried for hours to find out why my WD TV Live wanted a name and password to access my shared movie files on my computer, until I read in a forum that several people had to remove Windows Live ID Assistant to finally got their network shares to show up. I went to control panel, add/remove programs and saw that I had it, I uninstalled it and my network shares showed up after hours of trying to figure out what my problem was. I have no idea why this program makes the WD TV Live want a name and password, but it does.
Overall, a nice media player for the money. The network share bug if Windows Live ID Assistant is installed is annoying, and hopefully they fix it with a firmware update so people don't agonize over why their network shares don't work like I did.