Yes, it does. I know it does cause I'm listening to my music through the v2 DNAS on AAC only every night when I go to sleep. I'm using a local webserver to serve the HTML/Flash and a local flash socket policy server.
You're probably missing a policy server for the flash player. I don't remember the linux solutions but I developed a Windows solution a long time ago (if your v2 DNAS is running on Windows.) Look at
this thread to find the download if you're running the DNAS on a Windows server.