I cannot get 1.06 to talk to gmail.  
The problem seems to be a DNS problem.  Here is a tcpdump packet trace:
16:03:48.062665 IP 10.0.1.1.1024 > 10.0.0.1.domain:  2+ AAAA? smtp.gmail.com. (32)
16:03:48.130153 IP 10.0.0.1.domain > 10.0.1.1.1024:  2 1/1/0 CNAME[|domain]
16:03:48.130175 IP 10.0.1.1.1024 > 10.0.0.1.domain:  3+ AAAA? gmail-smtp-msa.l.google.com. (45)
16:03:48.141180 IP 10.0.0.1.domain > 10.0.1.1.1024:  2 1/1/0 CNAME[|domain]
16:03:48.141188 IP 10.0.1.1.1024 > 10.0.0.1.domain:  4+ AAAA? gmail-smtp-msa.l.google.com. (45)
16:03:48.197813 IP 10.0.0.1.domain > 10.0.1.1.1024:  3 0/1/0 (93)
16:03:48.197836 IP 10.0.1.1.1024 > 10.0.0.1.domain:  5+ AAAA? gmail-smtp-msa.l.google.com. (45)
16:03:48.206772 IP 10.0.0.1.domain > 10.0.1.1.1024:  4 0/1/0 (93)
16:03:48.208280 IP 10.0.1.1.1024 > 10.0.0.1.domain:  6+ AAAA? gmail-smtp-msa.l.google.com. (45)
16:03:48.208364 IP 10.0.0.1.domain > 10.0.1.1.1024:  3 0/1/0 (93)
16:03:48.208767 IP 10.0.1.1.1024 > 10.0.0.1.domain:  7+ AAAA? gmail-smtp-msa.l.google.com. (45)
16:03:48.220308 IP 10.0.0.1.domain > 10.0.1.1.1024:  4 0/1/0 (93)
16:03:48.220316 IP 10.0.1.1.1024 > 10.0.0.1.domain:  8+ AAAA? gmail-smtp-msa.l.google.com. (45)
16:03:48.261554 IP 10.0.0.1.domain > 10.0.1.1.1024:  5 0/1/0 (93)
16:03:48.263250 IP 10.0.1.1.1024 > 10.0.0.1.domain:  9+ A? smtp.gmail.com. (32)
16:03:48.272232 IP 10.0.0.1.domain > 10.0.1.1.1024:  6 0/1/0 (93)
16:03:48.272239 IP 10.0.1.1.1024 > 10.0.0.1.domain:  10+ A? smtp.gmail.com. (32)
16:03:48.274911 IP 10.0.0.1.domain > 10.0.1.1.1024:  5 0/1/0 (93)
16:03:48.274919 IP 10.0.1.1.1024 > 10.0.0.1.domain:  11+ A? smtp.gmail.com. (32)
16:03:48.277787 IP 10.0.0.1.domain > 10.0.1.1.1024:  7 0/1/0 (93)
16:03:48.279294 IP 10.0.1.1.1024 > 10.0.0.1.domain:  12+ A? smtp.gmail.com. (32)
16:03:48.284406 IP 10.0.0.1.domain > 10.0.1.1.1024:  6 0/1/0 (93)
16:03:48.284413 IP 10.0.1.1.1024 > 10.0.0.1.domain:  13+ A? smtp.gmail.com. (32)
16:03:48.286300 IP 10.0.0.1.domain > 10.0.1.1.1024:  8 0/1/0 (93)
16:03:48.286308 IP 10.0.1.1.1024 > 10.0.0.1.domain:  14+ A? smtp.gmail.com. (32)
16:03:48.289960 IP 10.0.0.1.domain > 10.0.1.1.1024:  7 0/1/0 (93)
16:03:48.297351 IP 10.0.0.1.domain > 10.0.1.1.1024:  8 0/1/0 (93)
16:03:48.297359 IP 10.0.1.1 > 10.0.0.1: ICMP 10.0.1.1 udp port 1024 unreachable, length 129
16:03:48.327578 IP 10.0.0.1.domain > 10.0.1.1.1024:  9 3/0/0 CNAME[|domain]
16:03:48.327586 IP 10.0.1.1 > 10.0.0.1: ICMP 10.0.1.1 udp port 1024 unreachable, length 138
16:03:48.338810 IP 10.0.0.1.domain > 10.0.1.1.1024:  10 3/0/0 CNAME[|domain]
16:03:48.338819 IP 10.0.1.1 > 10.0.0.1: ICMP 10.0.1.1 udp port 1024 unreachable, length 138
16:03:48.339697 IP 10.0.0.1.domain > 10.0.1.1.1024:  9 3/0/0 CNAME[|domain]
16:03:48.340915 IP 10.0.1.1 > 10.0.0.1: ICMP 10.0.1.1 udp port 1024 unreachable, length 138
16:03:48.342714 IP 10.0.0.1.domain > 10.0.1.1.1024:  11 3/0/0 CNAME[|domain]
16:03:48.343995 IP 10.0.1.1 > 10.0.0.1: ICMP 10.0.1.1 udp port 1024 unreachable, length 138
16:03:48.345923 IP 10.0.0.1.domain > 10.0.1.1.1024:  12 3/0/0 CNAME[|domain]
16:03:48.345930 IP 10.0.1.1 > 10.0.0.1: ICMP 10.0.1.1 udp port 1024 unreachable, length 138
16:03:48.349972 IP 10.0.0.1.domain > 10.0.1.1.1024:  10 3/0/0 CNAME[|domain]
16:03:48.349981 IP 10.0.0.1.domain > 10.0.1.1.1024:  13 3/0/0 CNAME[|domain]
16:03:48.352854 IP 10.0.0.1.domain > 10.0.1.1.1024:  14 3/0/0 CNAME[|domain]
10.0.0.1 is my router and from my PC (on the same LAN), an nslookup works fine and reports back:
Non-authoritative answer:
Name:    gmail-smtp-msa.l.google.com
Address:  216.239.59.109
Aliases:  smtp.gmail.com
If I put the ip address in there, it seems to get farther but it doesn't seem to do a starttls and hence fails.
So I'm perplexed, how do you make the dns-323 talk to a gmail account using version 1.06?