Unfortunately no one can be told what fun_plug is - you have to see it for yourself.
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I picked up a DNS-321, put a single drive in it, and it is happily running ffp0.7 with Transmission. My trouble is in trying to connect to it on the local network. I'm just not sure of what I'm doing wrong. My firmware is the latest, 1.03, and cleanly installed.
Here are my router settings on a Linksys WRT150N, which has Wireless N and 100mb wired.
The ethernet cables are working fine. Dropout occurs on both wired and wireless.
A Windows 7 tablet and Windows XP netbook connect to the DNS-321 via Samba and FTP.
Both machines are mapped to the NAS by \\IP.ADDY\Volume_1
DHCP Server for LAN
Set to DHCP due to router using DHCP Reservation
I'm not sure either what's the problem you're asking help with: the dropout you mention? access permissions?
I don't see anything wrong with how you set things up.
If I'm not mistaken I've seen some some people struggling with Win7 (I'm still running XP). So it "might" be easier, as a first step, to sort the XP access issues first. When you do that, keep using the IP instead of the name from the client machine(s) to avoid any name resolution problems.
I hope you're using the exact same user-name/password combination in the DNS setup as you use in the client machine. Either that, or for the sake of troubleshooting drop both those shares in favor of a Volume_1/all accounts share.