My WD MBW ii drive failed as well after just 2 years of use. The box was behaving erratically for a few months (freeze ups, going offline) and being paranoid with my data, my important files were replicated elsewhere. The drive finally died for good in early Jan/2010. Based upon info on the net, I decided I would remove the two 500GB [Caviar blue] drives (drives A and B) and see whether they were useable. Since the drives were expected to be formatted for use with Linux, I tried a Fedora distribution to view the drive contents. I moved each drive to a Windows PC and booted up Fedora. Drive B was toast! I could not access the drive without the entire PC locking up! Drive A worked fine and Fedora revealed 4, Software Raid partitions. Since I wasn't particularly interested in the data stored on the drive, I proceeded to delete the partitions and run a simple Linux install on the drive to evaluate the drive's useability. Everything worked fine. Eventually, I decided to add the drive to a Windows PC as a second internal SATA drive. Using Windows XP SP3 diskmgmt, I deleted the Linux partitions and reformatted the drive into NTFS partitions. The drive is currently working fine in its new job.
As for the WD MBW, it appears the failed drive B was the cause of the unit's failure. Although it's not uncommon for drives to fail in the first 2 years, the fact that the unit experienced problems before the end of year 2 (and, of course, out of warranty) and the general annoying problems during the 2 years with the mionet software and the unit in general was extremely disappointing.