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 USE HP USB FORMAT tool google :-> "HP USB Disk Storage Format Tool"
or 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'
Referneces;