You are not alone. There is a change in Lion's "behavior" that has hosed a lot of NAS setups.
There is a workaround posted by apple in their knowledge base. You need to use the terminal, but it isn't too hard to do. If you can copy it, and paste, i believe it should work that way.
I personally haven't tried it, but it seems to be the most expedient solution for now. Reason why I haven't done it? My NAS is only an achival drive with lossless cds. I really don't need to access it immediately.
I have the same issue between my iMac running Lion and my LG NAS. I had another USB drive and I am using that for a temporary solution for Time Machine backups. But long term, I need to be able to use the NAS for my home network to work as planned.
As MichKor said, you are not alone. You could try what is suggested here:
From the comments, it appears to work for some setups but not for all. I haven't tried it yet since it isn't critical yet.
I have the same problem with my Conceptronic CH3HNAS and have found a free and easy solution.
Since a lot of people report they are able to access their NAS using apps other than the Finder itself, I decided to look for a free Lion-compatible File Manager to use instead of Finder.
I have found muCommander ( http://www.mucommander.com/ ) and indeed it works fine. All I did was click on the button highlighted bellow, go to "bonjour services" and select my NAS. It prompted me for my username and password and voilá, it works fine.
I keep Finder for everyday use and just load muCommander when I want to access the NAS. At least now I don't have to start my WinXP VM anymore just to access it.
Hope it helps you.
I have the LG N2B1 NAS, and I am running System Firmware 1.0.0_2657 - the optical drive is at H104.
My Lion TimeMachine does not work either. According to PC mag. however, LG will release a fix in september.
Until then you should be able to access your data through ftp or smb.
If ftp/smb is no option for you, then you could try the workaround Alexander Wilde has posted.
For the time being, I am waiting for the official LG fix.
I have an LG N1T1 and while the latest firmware did enable AFP support under OS X Lion, Time Machine support is still broken. The AFP support didn't really matter much to me anyway since I was accessing the NAS just fine in Finder using SMB.
I bought this thing in mid July, discovered that Time Machine didn't work under OS X Lion, but was reassured by LG support that an update that would fix Time Machine compatability would be out on September 1st, it's the only reason I didn't return it. Well, here we are on December 9th and it's still broken. Annoying is an understatement.
I have a LG NAS N2R1DD2 or somesuch serial number. I upgraded the firmware to 2660 today, the notes promise improved Lion support. Finder managed to connect to it OK, but could get no progress with time machine. When I opened time machine I had no evidence of any network drive even though I could see it in finder and could log onto itand put files in it.
I looked through the manual and although the instructions are wrong, it tells you to mount a volume in finder under the go, connect to server menu. When you select this menu you need to enter the IP address of your LG NAS, and choose a volume (0 public volume in my case). Once I did this, the disk appeared in time machine preferences and I am now backing up via time machine for the first time since the summer.
Now all I have to do is figure out how to get the iTunes server working. I am getting apple TV for Christmas and want to run from the LG NAs rather than having the iMac on all the time. Any advice greatly appreciated.
Punter16, I've just downloaded the latest N1T1 9595 firmware update...
and my Macbook is merrily backing up 164 gig.
Looks like LG have finally pulled their finger out :-)
Thiis workd for me and my LG N2B1DD1 which used DHCAST128
OS X Lion: Connecting to legacy AFP services
THANKS APPLE - LG offered no firmware update....Lesson ......I'll NEVER buy LG again!
LG have posted an update, but does not appear in the download section of the Knowledge Base entry for the N2B1 (which is here http://lgknowledgebase.com/kb/index.php?View=entry&EntryID=6415) .
Instead, it appears here;
The latest firmware as of 27th December 2011 is 2660. This initially worked for me on Lion, for 2 weeks, but appears to have stopped connecting over the last few days. I have not had time to investigate whether it is the same issue (the firmware on LION) or something else.