With respect to hard disks, which ones would you recommend?
Would it be better to use 7200rpm or would 5400rpm drives suffice?
If noise is an issue, definitely go for 5400rpm, and even better - do some reviews of what are currently the quietest drives available. There are huge differences between different drives, so this is worth doing. Google 'Silent PC' and you will find forums devoted to just this topic. Is it not possible, since this device will be on the network, to put it somewhere more out of the way? That is one of the great advantages of a NAS.
SidBala said:Why not build your own NAS? This approach is a bit more work to start with, but in the end you will get a very powerful server for less $$.
I went to my local computer recycle place and bagged a high-end(for its time) Pentium 4 workstation with 2gigs of ram for $0.
Then I got a couple of 2TB HDDs for ~$80 each. Installed Windows Home Server. I don't remember if I needed a windows PC to set it up. I just hooked up a regular monitor and keyboard to it.
Its been running rock solid for over 4 months now. I access it from my MBP, my Windows HTPC and my windows Laptop, over both wired and wireless connections. It can easily handle multiple 1080P streams with no trouble. Absolutely no problems so far. You don't really need to manage it much after initial setup. But you can do so very easily on a mac.
I also set it up as a print server. I installed utorrent for downloading. I even setup a live transcoding/streaming Airvideo server on it, so I can watch my movies on my iPad or iPhone. Mind you, this is being transcoded live!
For just $160, it was a very sweet deal for a 4TB WHS.
A couple of years ago I would have agreed with you - but nowadays, for most people who just need a basic file server without a tremendous amount of storage - it's not worth the effort. Setup is a bit of a hassle. That P4 SUCKS power, so for a device that is on 24/7, you will send all of your savings over the next couple of years to the power company. I think you forgot to add the $120 or so that a WHS license runs, so you've just narrowed the gap between a home built unit and an off-the shelf one with a warranty all the further...