A sample size of one is statistically invalid and should not be used to suggest that no drives work (especially since there has been at least one success story). Declaring that the problem is with the receiver is invalid as it assumes there can no issues with the drive itself.
Far too many of the issues posted with various setups here have been users trying to use drives that, for whatever reason, weren't recommended. Included in this sample have been drives larger than 750GB as well as RAIDs.
What about my "setup"? I have been using a WD My Book 500GB external hard drive, that worked fine with the two previous software versions, and now I can't watch archived shows, but have to restore them to the receiver first.