I found by gong back to firmware level 1.04 and then install foonz fun-plug, I can then telnet to DNS-323, changed the mode of BT directory to 777. I could then proceed to delete the BT directories. By returning to firmware 1.04, BT is disabled. I see no benefit to upgrade to 1.05 if I am not using BT. I also ran into the problem with the formatting stuck at 90+% with firmware 1.05. The same drive formatted fine with firmware 1.04.