I posted this below a couple of weeks ago or so, however, someone decided to hijack my post and I didn't see any responses..  I'm having this continued problem as well below:
Figuring that I couldn't get the Upnp server working, I've since tried other approaches...  today I even tried the Twonky, but as soon as I attempt to us it - I get the same crazy colored amber lights...
Has anyone had luck with this?  
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Sorry, I know this is an old thread, but I've probably recreated the issue again as well...  
I have been trying to get my Upnp working on the 323 with my XBox 360.  Saw numerous posts about not being able to see the 323 with the XBox - with suggestions of restoring to default, and enabling Upnp AV Server.  I did this - and can now see the 323 with the Xbox.  However, if I try to "refresh", I get the above described lights - Everytime.  
I had been running 1.07, but after getting the weird colored lights, went back to 1.06 with the same result.  The status of the refresh is only up to around 30% or so, however, shows succesful when I noticed the lights are "weird".  
Here are my specs - and I'm not using any hacks at all:
Total Drive(s):  2 
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Volume Name:  Volume_1 
Volume Type:  RAID 0 
Total Hard Drive Capacity:  980806 MB 
Used Space:  176471 MB 
Unused Space:  804335 MB 
Slot Vendor Model Serial Number Size 
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1 WDC WD5000AAKS-65TMA WD-WCAPW1080569 500 G  
2 WDC WD5000AAKS-00TMA WD-WCAPW1540045 500 G 
Any thoughts?
Thanks!
Jason