External HD for iTunes server

[appletvbob]

My 450gb iTunes library resides on an external hard drive which I fear is failing. The mac is an older iMac with USB 2.0, FW800.i connect via FireWire 800. I use the iMac for reading and burning discs, and as a hub to stream airplay around the house. Questions:
1. Would a USB drive be adequate for iTunes to read off and stream audio and video? It will only be capable of 2.0 speeds.
2. Whatever drive I choose; should it be powered?
3. If I stay with FW800, any recommendations? This iMac predates thunderbolt.

Thanks!

 

[satcomer]

I would get at least a 2 bay NAS with your iTunes Library!

 

[danielwsmithee]

I second the recommendation for a simple NAS. A NAS attached to a gigabit ethernet network will outperform Firewire800 and give you many more features. It is not as simple to setup, but has lots of benefits.

https://www.synology.com/en-us/products/DS216j

http://www.newegg.com/Product/Product.aspx?Item=N82E16822108236&cm_re=ds216j-_-22-108-236-_-Product