After hours of troubleshootign and problem solving I have managed to get my MyBookLive to show up again in my list of Target backup device icons. Although not 100% certain this is the solution, this is what “seems” to have worked for me.
Windows 7;
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Start
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Control Panel
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Administrative Tools
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Double click Services in thhe right hand panel
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Scroll down to WD Backup and WD Drive Manager entries
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Stop both of them (follow the instrucctions)
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Start both of them
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Go back to your desktop and start WD Smartware (as it was ended per 6 and 7 above)
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You should find MyBookLive is now available in your list of Target devices
Hoping this solves your problem.