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I've got an HP Mediasmart Server that I've installed iTunes on and can stream from that. However, in the end I usually just let my iMac do the streaming since iTunes on the HP gets fussy since there is no actual Audio or Video hardware on it.
 
You can get a NAS like Drobos or you can build a home server for about $350 ~ $400 (if you are not going to actually used it as HTPC)

a NAS won't stream to a stock appletv though, without another system running along side it - which defeats the purpose of using the NAS.
 
a NAS won't stream to a stock appletv though, without another system running along side it - which defeats the purpose of using the NAS.

You are 100% right, I keep forgetting that is not an stock functionality. second part of my answer still stand, IMO a DIY home server would do the job great while saving some green.
 
You are 100% right, I keep forgetting that is not an stock functionality. second part of my answer still stand, IMO a DIY home server would do the job great while saving some green.

a mac mini is great DIY home server.
i use one (in a headless setup).
 
too expensive, you can get similar specs for way less doing a custom build

don't have to buy a new one :)
plenty of second hand ones do the job nicely. i ran a old g4 mac for years until i replaced it with a new one recently.
 
don't have to buy a new one :)
plenty of second hand ones do the job nicely. i ran a old g4 mac for years until i replaced it with a new one recently.

This can go on forever...but in that case for the same price you can get a lot more device. No to mention that latest itunes won't install on older hardware, which does't allow features like iCloud and others.
 
I bought a couple of Acer Revo nettops a while back. About $200-250, low power, quiet. They came with Windows XP installed, but newer versions of this box (which were a bit pricier) came with Windows 7 (and more RAM). They seemed to be very popular, yet, for some reason, Acer stopped making them at the cheaper end of the scale. I have to wonder if they weren't cannibalizing sales of their other desktops and there was probably less profit margin on these. The newest versions seem to start at around $330.

There are other manufacturers who make similar models (see ZOTAC ZBOX and ASUS EeeBox), some of which can be had for $200-$250, but these seem to be bare-bones models with no OS or RAM, so you'd have to add your own.

Update: If you check newegg.com, you can find a Lenovo for $300 with 320GB HD, 2GB of RAM, and Win 7. It even comes with one of their neat-looking mini keyboard/trackball remotes (I bought one of these keyboards a while back and decided it wasn't my cup of tea). Or, if you have an extra copy of Windows lying around, you can probably save a few bucks by going with the ASUS they have for $185 (no HD, RAM, or OS).
 
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For what the OP is asking, a Mac mini is simply the best and easiest answer. Streaming to an unhacked AppleTV can really only be done with a computer running iTunes on it. Sure, he could buy a less expensive, bigger computer and run Windows with iTunes on it and stream it that way. I'd sure rather the tiny Mac mini, etc.

For me, the best solution was to buy an incredibly fast set of discs (the Western Digital MyBook Thunderbolt Duo) to hook up to my Mac mini, which is my "everyday" computer that is always on. I just moved my iTunes library to the very fast Thunderbolt disks and now all my media is available anywhere in the house on any Apple/AirPlay device. It rocks.
 
Just to be clear...the options I just mentioned are small, quiet, and low-power, like the Mac Mini, but they're cheaper (and would be running Windows).

Personally, I'm still hoping that Apple releases a new AirPort Extreme / TimeCapsule which can serve as an iTunes server.
 
Just to be clear...the options I just mentioned are small, quiet, and low-power, like the Mac Mini, but they're cheaper (and would be running Windows).

Personally, I'm still hoping that Apple releases a new AirPort Extreme / TimeCapsule which can serve as an iTunes server.

YEs, and yes..

IMO small custom is the way to go. I builed one for my GF no long ago, for ~$300 and just did one last night for a friend for ~$485 with 3D playback support, 2TB storage, bluray, fanless, quite, it came out to be great, I think i am just going to go that way, once I replace my TV for a 3D capable.

TimeCasuple with iTunes server would be pretty cool
 
Is this possible and if so where can I pick up one, preferably 2TB+

I know Exactly what you mean. I use a Mac Mini as my iTunes server and while it's a workable solution, it is not ideal due to cost if it's primary purpose would be to serve iTunes content to iOS devices. And no, the cloud isnt the solution either because not everyone buys their content off iTunes.

What I'd like to see is for the Time Capsule to evolve into the iCapsule. Let it do Time Machine backups, but also let it store your iTunes library (internal or external drive). That would solve everything.
 
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