Problem installing WD Anywhere on Mac

I have just purchased a 4TB MyBookWorld II

When I installed WD Anywhere I expected to see 'We have found your WD storage' and the option to select Backup All My Files or Customise my Backup Link.

Instead I got the Add backup plans .. window. If I try to create a backup plan and select Network Folder and then click on the 'Back up Files to' button and then select the MyBookWorld-Backup volume then I get the error message 'Connection Failed' and therefore can't create a backup folder.

I also tried installing on a MacBook Pro running Leopard with the same result.
I tried to connect from the Finder but this also failed.

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