Ditto here. Similar problem(s) with a LinkStation Live 1TB. First unit I received actually had the wrong firmware installed out of the box. Called Buffalo tech support and they informed me that I could RMA the unit, but would have to pay the shipping. Pretty shabby for a factory defective unit. Fortunately the retailer I purchased from (buy.com) agreed to exchange the product and cover shipping both ways. Take note guys - THAT's customer service. My replacement unit has been nothing but trouble. Drops off the network frequently, fails to shut down when requested, is suffering the endless prompting for password syndrome described in multiple posts here, and pretty much needs to be re-flashed every time the unit restarts. I quite honestly have lost track of the number of times I have had to reinstall the firmware. To give you some idea how frequently it's needed, I keep the installer in a folder on my desktop. No kidding.
My last call to tech support resulted in a promise for a call back that never came. So what I would like to know is this - Are we ever going to get firmware that works reliably, or should I just yank the drives out and put them to use in hardware that actually works? I know there are those that seem to have found favor with the NAS gods and have no trouble with their LS, but all you have to do is look through the posts here and count the number of "fixes" that involve reinstalling firmware to realize that there is a real problem with some Buffalo products.
Lastly, sorry Paul but your last comment is too good to pass up. Perhaps that's what happening to all these units - "...we will insure a reliable working machine is replaced with yours." You keep replacing all the reliable, working machines with faulty ones...