I'm having the same problem and using firmware 1.02.08.
After the WDTV is off for a while (not sure how long, but maybe days), I cannot turn it back on with the remote. I've tried using a Harmony as well and the WDTV won't turn on.
The "solution" is to unplug and plug back in the WDTV and the remote responds again. Of course, every time this is done, the WDTV has to rescan my drives.
So, in my case, I don't think it's the WDTV's remote that is the issue because the...