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Forget about buying a sub-300GB external hard drive or network attached storage (NAS) server. Save your money and wait for Buffalo Technology's “TeraStation,” a 1000GB (4 x 250GB) monster NAS server for roughly a $1,000 that the company has just released in Japan. The TeraStation, which will hopefully be available in the states early next year, is both Macintosh and Windows compatible, capable of RAID-1 (creates an exact copy of all of data on two or more disks) or RAID-5 storage configurations (better redundancy option in case one drive fails), and provides both a 1000Mbps Gigabit Ethernet (standard Ethernet is 10/100Mbps) port and USB 2.0 port for direct to PC connectivity."
These NAS solutions seem all the rage right now and the thought of having a RAID 5 NAS under my desk sounds great to me. Hopefully the price will drop a bit when it gets here, but there is nothing like competition to help lower it. 8)