I did have some problems getting this approach to work on a TS-1.0TGL/R5, which sound similar to those jarrodb has experienced.
Read the following which have links to the downloads hightlighted below.
http://homepage.ntlworld.com/itimpi/telnet.htm#TERA_ORIG?
http://homepage.ntlworld.com/itimpi/opentera.htm??
1. Applied telnet enabled firmware 1.12 using English updater - OK
2. Applied OpenTera firmware - OK
3. Used MakeSpace script - broke web UI
4. Re-applied 1.12 - OK web interface back
5. Re-applied OpenTera firmware - OK
6. Applied Samba 3.0.25 with AD support - Not OK, could not access from PC
7. Applied Samba 3.0.37 - OK, had to use muCommander to copy it over
By following the directions offered by Krishkal it was ultimately successful. However, even after installing Samba 3.0.37 I had problems with access (I am guessing permissions - really don't know anything technical) which even broke access via muCommander on certain folders. The access problems seemed to go away with deleting folders, re-booting the TeraStation and re-creating them.
I don't use Time Machine either but I have fired it up and started a back up as a test, which didn't work as it looked for the backup disk then reported the backup disk was not available.
I felt a little out of my comfort zone doing this, so it is quite possible I caused some of these problems and not the firmware updates. I wouldn't have known where to start if I didn't have a PC to copying the files over with, and more importantly back up the data on the TeraStation. Having said that I couldn't use the TeraStation as I wanted under Lion so had nothing to lose. Obviously, back up first and at your own risk update.
The low risk approach to gaining file access is muCommander which I discovered from here.
https://discussions.apple.com/thread/3189768?start=0&tstart=0?
I used:
1. Telnet enabled firmware
http://downloads.nas-central.org/Users/itimpi/terapro_112e.zip?
2. OpenTera firmware
http://downloads.nas-central.org/Users/itimpi/OpenTera_v5.zip?
3. Samba 3.0.37
http://downloads.nas-central.org/Users/itimpi/samba-3.0.37_ppc.zip?