D-Link Multimedia,
I am hoping you might be able to provide some insight on this.  The new drives I am trying to get functioning in my DNS-323 are Hitachi 2T 7200RPM and 6.0 gig/s transfer rate.  My old Seagate drives are 320G 7200RPM, but have a slower transfer rate.  Could the transfer rate be the issue here.  I have tried an old 150G drive and it seems to function fine. This leads me to think the newer drives are some how causing the processor on the DNS-323 to lockup.  I do not know why the unit would stop all IP communication though (non responsive to ICMP and HTTP).  If you think there might be a fix for this I am willing to work with D-Link, but at this time the unit is not doing me much good.  I purchased the quicker drives so in the event the 323 were to fail I could use the drives in a different unit or even in one of my PC's. 
I do not believe it is a flow control issue either.  The unit is connected to a Cisco switch and I have run 10meg, 100meg and 1000meg transfers and the unit continues to lockup.   There are not ingress or egress errors on the switch port.
Thank you again for your support.