I think you can rip your DVD as AVI format because I heard some MP4 videos can not playback well in WD TV, Just keep the resolution do not above 720*480 because this is the max resolution of DVD, otherwise your video quality will gonna bad. I used Leawo DVD ripper before, it's my second choice beside handbrake.
.avi is not crisp and sharp and detail is gone in the same size.
No problems with newer firmware. Plays anything fine.
And I am sure the new wireless one is fine too.
Well, I never had a problem.