In theory the Seagate should be OK.
In practice 2TB can hold a pretty large library, probably too large for
the Touch to handle comfortably.

For not too much expenditure you could purchase a NAS capable of running
LMS and a 2TB SATA drive.
I've been using one for a couple of years now, and it hasn't missed a
beat.

http://www.zyxel.com/uk/en/products_services/nsa310.shtml?t=p



Chris :)
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