And you had the unit totaly unplugged from the wall when you plugged in the ethernet cable AND THEN you appled power?
Try to restore it to factory default and try again. You have a demo unit, once you go through the setup, it should be back in normal mode unless you do factory reset again. Have you tried to update the firmware when your connected via eithernet?
Perhaps try Safemode and flash the firmware there?
In closing, it shoud be as simple as having no power supplied to the unit (not off, but totaly unpluged from the wall) and then plug in a live etherent cable, apply power and go through setup.
Also, for what it's worth, the Linksys BEFW11S4 does not play will with the Soundbridge units, it's not your issue now, but it may casue issues if you get the unit working (consant rebuffering via Wi-Fi). I know for sure the M1000, M500 and M2000 can;t work worth a hoot with that router, but perhaps the Wi-Fi data stack is different on the M1001, but I doubt it.
P.S. the early M1001's did say M1000 on the front bezzle, but would say M1001 on the back of the unit on the sticker and on the VFD when it first boots up.
I've done that; when I get into Set-Up, the SB screen says that "WiFi is disabled." So I go to Ethernet; the screen says something like "Ethernet is normal, and is connected to an active network." An iMac is also connected to the router (a Linksys BEFW11S4); the new SB can access the playlists stored on this iMac. With Ethernet active, I can also access Internet Stations, with the SB playing My Favorites just like my other SB. BTW, This unit has the M1001 label on its back, "solid" endcaps, and the "M1000" beginning directly below the "S" in soundbridge on the front.
What else should I do? What does "Flash Memory Library" mean? Could it be part of the buffering? If so, can I dump it and restore WiFi?
Roku3 and Roku HD1000 [Rev B] on a Samsung HLP5674W DLP in the living room; a Roku2 and two Roku XS and a few SoundBridges.Win7; Kubuntu and XP via RT-N66U, E2000 and a switch or two. I own stock in Roku, it's just all in the form of hardware.Viva la Roku