A decent single bay NAS without drive (such as a Synology DS110j) will
cost at least £120. 

A Dell Optiplex Ultra Small Form Factor PC (25 x 25 x 9 cm) with
external PSU can be had on eBay for less than £100 depending what CPU
you want.  I've just seen one with a Core2 Duo 1.8, 2GB RAM, Vista, for
£90.  A 2 TB HD can be had on Amazon for £65.  

When I was looking into this I also considered a NAS drive but the more
I looked into it the more I felt a dedicated "headless" PC would be a
better more flexible option.  You can control it from your main PC via
the Squeezebox Server web interface or using Windows remote desktop. 
Most NAS drives do not use FAT32 or NTFS file systems so if your NAS
Device fails you can't simply remove the HD and put it in your PC to
copy the data off.  The main downside is Power Consumption if it is
going to be powered up all the time.

I have heard many posters refer to NAS as "NOT A SERVER".


-- 
Raindogs
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