Hey there, Sir Crow!
Let's try this WD My Passport Ultra on your computer and see how it will react there. It may be the sleep timer because the Drive Utilities installed on the drive have that option, but it may also be some sort of a problem.
I'd switch the USB ports on the Channel Master DVR+ and see if My Passport is going to act the same way. (It might not be getting enough power supply from this USB port)
Just to make sure that the blinking light is not some sort of an issue, I suggest you hook it up to the computer and see if it's going to be detected everywhere without a problem.
You can also see if the Sleep timer is set and disable/enable it if you want to.
Once connected to the PC, I'd suggest to back up the data from your external.
Afterwards perform an extended test using the DLG software, just to make sure everything is okay with the drive itself:
http://support.wdc.com/product/download.asp?groupid=810