Turns out this is remarkably easy to fix. Silverlight 4 apparently has issues under Netflix for users that upgrade after using Silverlight 3. Not sure if this affects users who start with Silverlight 4, but I suspect that it doesn’t. After the upgrade, Netflix is unable to write to a file that needs to be edited frequently. I found the solution at http://www.kristoferbrozio.com/2010/06/25/fix-for-netflix-error-code-n8156-6013/ but not directly in the text. Reading down through several comments, the file name is mentioned that is causing the problem. Simply rename this file .old on the end and you’ll be able to resume playback.

This file is actually located at C:Documents and SettingsAll UsersApplication DataMicrosoftPlayReadymspr.hds on XP with SP3 installed, but could be at other locations for other operating systems. To see this file, you must be able to see hidden files (from Windows Explorer, select Tools -> Folder Options -> View and then click Show Hidden Files and Folders. In order to rename it, make sure all Internet Explorer, Firefox, and other browser windows are closed. From the Tools -> Folder Options -> View, uncheck Hide Extensions for Known File Types. Then if you right-click on the file and select rename, then add .old to the end of the existing filename, you will have a nice working installation again.

BTW, for those that might be interested, I use Windows XP SP3 through VirtualBox on my Linux-fied MacBook 6,1. Works fine with Netflix, although I really hate having the Windows license installed. Still, in my line of work, I have to have access to a full-blown Windows machine as well, so this is a good enough option.