I believe I may have the same problem.  I can get it to work for 2 minutes and 30 seconds(ish) and then playback stops.  The device no longer sees my Serviio.  I am using a few WD Live devices for playback.  Both of them stop at the same instant. 
What's weird as the Xbox 360 still works just fine.  The file is being re-encoded with the Xbox, but I believe the WD Live is just receiving the raw stream.  The WD Live devices are the only devices I really use with Serviio because it supports more functionality than my TVs or the Xbox.
Here is an excerpt from my log file with one file playing:
https://www.dropbox.com/s/f8m2kaii0ws8z90/serviio.log.txtThe device quits playback at the same time this line is logged:
serviio.log:2012-10-23 20:37:03,561 DEBUG [WebServer] I/O error: Broken pipe
My syslog shows nothing during the time frame.  Everything is hard wired gigabit.  This worked great prior to upgrading to Ubuntu 12.10.  I can't really downgrade or reinstall.  I'd be happy to help debug this issue.  Is anyone else having issues with the WDTV Live after upgrading to Ubuntu 12.10?
Linux vegas 3.5.0-17-generic #28-Ubuntu SMP Tue Oct 9 19:31:23 UTC 2012 x86_64 x86_64 x86_64 GNU/Linux
Any help is appreciated.
Thank you,
Michael