How do I disable the password lock on my My book 1 TB, I want to so I may use it directly with my xbox 360, since it won't pick it up on my pc list.
Your question is not clear, has the password been set, and you forgot it?
http://community.wdc.com/t5/External-Drives-for-Mac/WD-My-Book-1TB-locked-out/td-p/6860 states the following:
Or look for the user guide here http://support.wdc.com/product/download.asp?level1=1&lang=en
This came to the front page, so I'll reply, but the OP probably wiped it already.
See if you had installed anything from a CD originally to enable this password set-up. You should summon the same program to seek the option to change the known password to an empty one. If you don't remember the original password, then you will have to clean-wipe it.
My best guess is that the PC list means your "My Computer" list of disks. If it used to just be there originally and suddenly disappeared, you have a disk problem totally unrelated to passwords. Then I would recommend running the original CD's recovery programs (or use the Moab's links and download anything that looks useful for your exact WD model.)