The answer is no ..... steer clear is my advice.
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I've been trying with Lion and more recently Mountain Lion (and I probably started to get it to work way back with Snow Leopard!)
I purchased one 12-18 months ago and have never had any success with reliability of time machine on the DNS320. Sure on the box it says 'Mac compatible', works with Time Machine ..... but once again it is a weak claim by manufacturers / poorly supported. Their geeks may have got it to work in the labs but in the wild it is a different story and support is none existent other than users trying to help each other.
As a NAS it will work for file storage and it is reasonably quick and is certainly usable. I have my home videos on there that i call up in itunes. I can then through appleTV view the movies from the NAS with only a small amount of buffering. This hasn't been problem free. I've owned it over a year now and it NEVER worked properly. It was only a recent release of another
beta firmware (bloody hobby to D-Link!) that made it usable with streaming larger files.
Time machine is a different matter on the DNS320 and why i'm really disgruntled with my purchase. I knew I should have not been so tight and should have gone for a Time Capsule instead. Paying a premium for a not quite perfect Apple product would have saved me hours of hassle and wouldn't have left me without a reliable backup system for over 12-18 months.
I've been through several versions of beta firmware and each time i get my hopes up. In the past couple of weeks I installed their latest firmware in the hope TM would work. In it went then I fired up TM ...... up goes 300Gb+ of data overnight and all looks well. The next day I see TM kick start on my Mac and it is uploading data ..... feeling good about it. The following day it does the same and I start to relax. The next day, BANG ..... a new error message!
Time Machine completed a verification of your backups on “dlink-Fxxxxx”. To improve reliability, Time Machine must create a new backup for you.
I looked at software alternatives to TM such as Carbon Copy Cloner but they all seem cumbersome compared to the slickness of TM.
So I'm still sat here with no reliable back up due to a poor product. Save yourself the hassle too and look somewhere else. Good luck!
P.S. I don't consider it acceptable to have to follow instructions from people that fully understand this stuff to make it work. It makes it unusable for the average user and not reliable when something goes wrong .... like a manufacturer does an update. If D-Link says it works, then it should just work out the box.
http://www.shadowandy.net/2011/08/time-machine-on-lion-with-dns-320.htm