The DNS-321 does not support advanced format disks (AFT). You will need to find legacy HDDs that are not AFT.
DNS ShareCenter - AFT (Advanced Format Technology) Hard Drive Support
I know I'm digging up an old post, but I thought it was important to create an account to reply to this thread in case anyone is looking to install WD red drive(s) in their DNS-321, as I had read this post before trying it and I'm glad I did, despite seeing this cautionary post.
I have a DNS-321 (ver A2) that I've been using for a decade or longer now, and it's always served me well so I've never bothered upgrading. Had a Seagate in there as part of my RAID1 configuration, and was looking for a replacement. Saw the WD Red on Amazon for an amazing price, noticed it was made specifically for NAS, and I've always had great experience with WD drives (sidenote: I was always a diehard Maxtor user before they were bought out by Seagate, I still have some Maxtor drives that are nearly 20 years old and they work perfectly - keep in mind I keep them encased for preservation - but Seagate drives don't have decent longevity in my opinion).
Anyway, I swapped out my dead Seagate drive for the WD Red (model# WD20EFAX) and
IT WORKED! So if you're a DNS-321 owner and contemplating getting the WD Red, don't hesitate. It's only been in there one day, but it's doing great so far. Format and RAID cloning took ~5 minutes for 2TB.
If you check
this PDF from WD's Web site you'll see that all the WD Red use advanced format, so it's not a matter of 2TB vs 4 TB.
TL;DR: WD Red 3.5" drives work just fine in a DNS-321 (WD Red model WD20EFAX tested on DNS-321 ver A2).