I checked out Zyxel's website and found a new firmware which had a bunch more options for their media portion of the server. Once i upgraded the firmware this unit worked like a champ. I think the option which came with the new firmware Samba Support=ON, was what did the trick.
Does anyone know? is Samba support absoultely necessary to stream video and music?
Anyway Im up and happy - this unit rules.
Oh yea, I access the media on the NSA-220 with by accessing it through media server, NOT network shares.