Yes, WDTV received a firmware update yesterday that added compatibility to the 350 / 500. I was watching 1920x1080 after applying the firmware update on WDTV. Picture qualtity was great.
However - my WDTV "MISC" on screen controls for TiVo are not available when connecting to the 350/500. Instead of TiVo buttons are generic Custom25 - Custom10 buttons that some seem to map to TiVo IR codes. For example, Custom16 sends the TiVo button IR command.
This issue appears only to be a problem when connecting to the new hardware; when I connect WDTV to my Solo the TiVo controls still show. I also have Boxee Box and it has the same problem with showing generic buttons too.
Thank you for contacting us here on the answer forum, I am sorry to hear that you are having a problem connecting to the WD live with your Slingbox 500. We just released a update that was suppose to fix any problems connecting to the WD live and this should cure your issues that you were having. If you are still having problems connecting you should try the steps below.
Hope this helps,
Sling Moderation Team