ΟΚ, hello all!
I've spent the last couple days reading and learning more about how to unbrick the DNS-323 (thank you all for the input) and it basically boils down to this:
1. I searched the link Fordem provided to the DNS-323 wiki and there, I found this tutorial
http://dns323.kood.org/howto:reflash_from_windows which will try first and if not successful then explore other options i.e. from Linux.
2. I chose to get this 'Logic Adapter' -->
http://dns323.kood.org/hardware:serial#bkamen_s_rs232-_logic_adapter which is mentioned in that tutorial as one of the ways to connect to the NAS and I also installed (per the tutorial) a terminal emulator called "Tera Term".
3. Unfortunately, one of the tutorial's steps is downloading/installing a utility called "splitdns323fw" but the link is not working, so that's one roadblock to overcome.
4. However, the tutorial's author does provide a link with firmware v. 1.10 ALREADY split in the two files it consists of (e.g. Kernel and uRamdisk). So if I can't split my own firmware (version 1.09) I will have to use the ones provided and if successfully restored, downgrade to 1.09. Of course this is what I tried in the first place and ...failed, will see how it goes this time. Perhaps this time I should power the DNS-323 from a UPS just to eliminate bad grid power.
5. Given that I have all parts in place (adapter, term. emulator, f/w files, connection to NAS, etc) one last step needs to be explained: The tutorial says "match" the pins from the adapter to the NAS motherboard connection. I do know the pinouts on both sides but does this mean that Tx goes to TX and Rx goes to Rx or the opposite? i.e. Tx goes to Rx. To me the later makes more sense since a transmitted signal needs to be sent to the corresponding receiving end. But I really know nothing so I want to be sure before I try anything stupid and fry the unit for good.
BTW, I wanted to ask Ivan if this method (of recovering from Windows) has anything to do with your version that you mentioned might be able to provide. And thanks again for all the feedback so far!
Finally, I did check the power supply and it provides good/stable +5 and +12 volts. But I did not have the time to check connected to the unit. I will do so though before I attempt anything more elaborate and let you know. However, if I see no problems (significant voltage drop, shorts, etc.) will proceed with the recovery as per the tutorial.
--
Well, that's it for now, please if you have to time, do comment on the above, I will get back with more info, if not shortly, definitely by tomorrow, after I have the adapter and made the connection to the NAS unit.
Thanks again for your time and feedback!