UNC paths will not be possible, the DNN core components (the UrlControl and file download handler) can only work with files in the DNN path - plus, Windows security would generally not allow access anyway.  I'd suggest you set up shadow copying in Windows to sync up with a UNC path if you are in an intranet environment.

New release date:  When it's done :-).  But seriously, we're aiming for between 4-8 weeks from now.

I'm in a similar situation.  I'm using DNN for our organization's Intranet.  People seem to like getting at files through the Intranet vs. simply opening Windows explorer to view the network shares and drilling down through a few folders.  I've been uploading individual documents to the DNN site for the past year, but it's cumbersome, repetitive, and just something I'd rather not be doing.  I'm going to soon be re-organizing our directory and file share structure and educating people on how to use Windows explorer (or "My Computer" to many of them) to view the shares on the file server instead of the Intranet.  As I have been experimenting w/ DNN I have different modules w/ company forms; 1. Documents module, 2. Links module, and 3. IFrame (to view the file server web shares).  None of the 3 are Searchable w/ DNN.  And only the IFrame option allows a mostly hands off approach for me.  Just setup IIS on the file server and point IFrame to it. 

This post cold just as easily be in a Search or General Forum but I believe it is relevant to the Documents module as well. 

Does anyone have any suggestions or ideas before I scrap DNN for my organization's file repository? 

Thanks,  Mike