thanks for the feedback guys.
scaramanga:
I think I know what you are talking about at Samsungs link, they mistakenly list 750MB for the drive on the web page, but the data sheet indicates 1TB.
lookingforinfo:
OK here's what I did.
1. Re-confirmed 24GB used out of 983GB was reported by Windows (previously I mistakenly stated 986GB).
2. Copied approx 2.2GB of data to DNS. Both Win 7 and DNS state 2.3G used out of 983GB used.
3. Deleted the copied files from NAS. Both Win 7 and DNS state 75MB (yes MB) used out of 983GB. The NAS_Prog directory created by DNS is about this 75MB size. Still large IMO, however, not gigantic like 24GB.
Soooo, it looks like I do not have a problem now.

Strange that the above steps ironed out that wrinkle. I know what some are thinking, I must of read 24GB wrong (ie 24MB). This is not the case. As you can see from the link below, others have had this issue, however no resolution was concluded...
http://www.tomshardware.com/forum/248537-32-problem-format
thanks for taking time to discuss.