I ordered a Western Digital My Book World Edition WDG1NC10000N 1TB Home Network Storage with Remote Access from Newegg today.
http://www.newegg.com/Product/Produc..._-NA-_-NA-_-NA

I plan on using it for the obvious things -- mega storage, videos, music, disk images, etc.

I'm curious if any of you use a NAS with your Xbox 360 for the media extender capabilities. I've used my normal XP machines and XPMCE machine with the Xbox. Seems there was media extender software to make the PC visible to the 360. Not sure how to approach it using a NAS. Thoughts?