. . . As an aside, if anyone can reach the powers that be, the firmware downloads are sorta screwed up on the main site. The link http://support.dlink.com/ProductInfo.aspx?m=DNS-325 lets you select which firmware to download and it uses names like "DNS-325_FIRMWARE_1.01.ZIP" but they're not in zip format, they're raw lif (binary) files. It is smart to provide them in zip format but someone's got to fix the files on the website to correct them.
Also, one of the firmware files is damaged somehow, I've tried a hundred different ways to test it and the 1.01 file won't work. I attempted to return my system to original status so that I could experiment with it and do the upgrades slowly instead of jumping to where I was (at 1.04) but ran into those problems.
I just validated your findings and am escalating this to "the powers that be"
The files on support.dlink.com point back to ftp://ftp2.dlink.com/PRODUCTS/DNS-325/ and it looks like the source files have the same issues when accessed directly. The appropriate D-Link resources were notified. This type of issue is usually resolved rather quickly.