I figured it out.... I found the following release note from Version 2.05 on an offshore D-Link site (2.05 doesn't seem to exist on this side of the pond)
D-ViewCam Software Release Note
Software: 2.05
Date: Jun 01, 2009
Problem Resolved:
(4) Fix recycle function:
Erase the recording files when the storage even appears disconnection.
Correct the wrong operation when set 30 days but went to erase on 3th days.
I had the recycle option set on the default 30 days (which was actually erasing files after 3 days) Once I set a gigabyte limit for the recycle all is well !!!!!