I'm sharing in CIFS as sell as NFS as I have windows machines on my network as well as linux. WD TV Live can see either the CIFS shares or the NFS shares. Personally, I found it easier to set up the NFS shares as I've never been able to set up a Samba server right on my Linux box to enable a guest account. From forum posts, it seems that the dev team for Samba decided to close a potential security hole in Netbios, and I may well have hosed my smb.conf file on the Linux machine in trying to make it work. In any case, I'm about to give up on CIFS shares and get an NFS driver for my Windows XP boxes and do everything by NFS.
So, getting back to WD TV Live and FreeNAS. I just simply followed the tutorial wiki to set up FreeNAS for NFS sharing. On the WD TV Live box, under the Files, Video, and/or Audio section you should see see a choice for NETWORK SHARE. If you select this you should see a choice for LINUX SHARE. Select this and you should be in your shared NAS folder. Now, if you don't see the NETWORK SHARE choice, you need to use the red button mid way down the controller to get to the top level of sharing. That's all there is to it.
Enjoy your media!