From the manual it definitely has a different GUI and several features that people have been requesting for the WDTV1, like using the next button to skip to the next chapter. The WDTV1 requires you to navigate the option menu, at least five button presses, to do the same. The latest prerelease firmware finally fixes audio sync issues with MKV files (after being broken for ~8 releases), but it looks like generally they used the WDTV1 to beta test their next product, leaving us behind. Sucks to be an early adopter.
Until Western Digital gets their firmware issues ironed out, I wouldn't buy one. I've been encoding my own MKV files, and the last several firmware updates have major audio sync issues. Maybe you'll have a fortunate file mix and squeak by, but I'm looking at a $130 box that isn't worth plugging in--unless of course you don't mind throwing around another 500 hours of encoding time to pick another format.
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