I’m using an old first generation WD TV HD media player for watching my dramas (got it for the subtitle support that the PS3 lacks). I was curious about whether it’d work with a hardware encrypted hard drive. I googled a little, but didn’t find any specifics. The manual suggests that it’s compatible with older Western Digital drives with “drive lock”, which is just a password lock (no encryption). I didn’t find anything about compatibility with current hard drives.
So I went out and bought a new WD My Passport, enabled encryption and connected it to my WD TV. The WD TV recognizes the encrypted drive. It asks you to unlock it by entering the password using your remote and then it works like a normal hard drive. As long as the WD TV has power (including stand-by), the drive stays unlocked. Once you eject or unplug the drive or the WD TV loses power, the drive locks down and you have to use the password to unlock it again.
I just thought I’d post this in case anyone else is googling for the same thing. The current My Passport drives work out of the box with the WD TV HD (oldest version, Gen 1) with encryption enabled.
The drive won’t work with the PS3 though. Get a basic (and FAT32 formatted) USB drive for that. Only get this particular drive if you want to use hardware encryption.