I downloaded the one you mentioned (1.06b60).
Have you enabled uPNP from the DNS-323? Even without the new firmware my Xbox 'saw' the DND-323 it just wouldn't play anything.
You may also have to enable uPNP on your router (I have a Draytek and had to do that).
Steve
OK, yes UPnP is enabled on the DNS-323 and also on the router which is a Sagem Livebox from Orange.
I'm doing UPnP transaction between the DNS-323 and an HD DNS8620 media player from H&B since many months and it works.
The only reason why it won't work with the XBox is that this device has a need of the DLNA protocol which was (is not) implemented into the DNS-323 firmware.
Are you using fixed or DHCP IP address for the Xbox?
How do you see the DNS-323 into the XBox as a PC computer or a Media Center device?
In which menu do you see it within the XBox?
Best regards
pf