Downgrading
From WikiDLXTV
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UPGRADE / DOWNGRADE INSTRUCTIONS
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copy all wdtvlive.* files (ver, bin, & fff if available) to usb key formated to FAT/FAT32 (under linux mkfs.vfat)
dont use NFTS its better to use better supported well known FS like FAT
Vista is using exFAT also PE2USB is able format USBkey to FAT16/FAT32
if is not recognized new firmware change VERSION to higher release
------wdtvlive.ver------ VERSION='1.02.21.WDLXTV_LIVE-0.4.2.0' LOCATION='wdtvlive.bin'
probably you should change to
VERSION='1.20.04.WDLXTV_LIVE-0.4.2.0' LOCATION='wdtvlive.bin'
You may also have to clear your /conf
rm /conf/* ; config_tool -s; config_tool -s; reboot
Referneces;