My WDTV Gen 2 is stuck on 480p as well - is there any solution to this??
The WDTV Live forces the unit to 1920 x 480.
The WDTV Live Hub forces the unit to 1920 x 1080, so obviously there is a solution. The PS3 forces the image to 1920 x 1080 too.
When is Western Digial ever going to fix this???