New firmware (ZIP) is out for WD TV Live. Actually, it is out for 2 days now. I do not know how I missed it. Anyways, most of the improvements are for playing video files from YouTube. I still can not understand why there is no decent support for .sub (microDVD) subtitles. Well, I guess we will have to wait some more time. Complete info on the update can be found in official Release notes (PDF).
I just did the upgrade and all went smooth as expected. I hope to bring 2 TB drive from the U.S., when I come back next week. 🙂