I recently bought an
Infrant ReadyNAS NV+ with 1.5TB of space and I LOVE it. [...] has streaming support (for iTunes and other media) and a whole list of other features. [...]
I can't directly answer your question about Time Machine, but I would imagine that Time Machine would be just fine with a NAS. iPhoto (and Aperture, for what it's worth) works just fine on my NAS! And same goes for iTunes. [...] It's not the point of this thread, but I am just mentioning it because it's the ONLY drawback I can come up with with a NAS.