It looks like Western Digital has a successor to its WD TV lined up, bringing its feature set closer in line with rivals such as the Popcorn Hour A110. At least that's what photos and specs somehow ‘acquired' by AVS Forums members suggest.
The WD-branded device definitely looks like a WD TV2 would be expected to, adding features notably omitted from the original, most importantly an Ethernet port, for streaming media from NAS boxes and the like.
Specs, as claimed by forum member "kennypb" with no word as to where the information was obtained include 1080p playback of AVI, MPEG and MKV files, with important formats including Xvid, h.264, x.264 MPEG-1, -2 and -4, VC-1 and WMV9 supported. The addition of subtitle display should appease those complaining of its absence from the original WD TV.
Dolby Digital and DTS decoding is listed as supported and there‘s a suggestion that bitstream output of both formats' HD versions is possible. Though there's no specific mention in the leaked specs, assuming they're genuine. Given this feature set looks like a pretty logical update to the WD TV, I'm inclined to believe it.