After spending way too much time on this and finding several failed solutions, I finally found a way to get rid of the Bittorrent client:
**
These instructions assume you have ffp 0.5 correctly installed**
1)  login as root
2)  cd to /mnt/HD_a2 -or- /mnt/HD_a4  (depending on your setup)
3)  type "rm -rf /Nas_Prog"
4)  type "ls -l" to see if the folder deleted
5)  reboot the 323
6)  log into the download area of the gui
7)  click on the bittorrent tab, you should receive a message stating "to install bittorrent..."
ffp:  
http://www.inreto.de/dns323/fun-plug/0.5/fun_plug.tgz