ADVICE REQ: File Server Options for Small Workgroup

Some friends of mine work at my local Newspaper. They have about 8 Macs with 4-5 of them doing Indesign and Photoshop work on files stored on a server. Right now they currently have an 800 MHz G4 with an external Firewire hard drived shared via the free SharePoints software. Performance is acceptable to them but today the firewire drive decided not to mount so they were hooped. I got it back up and running for them but they are wondering if they should be considering a new server.
Can anyone make any recommendations? Basically, they store ALL of their working files on the server volume - Indesign Documents, Digital Photos, ad layouts, everything. They do not use the server for anything else other than common storage. As I said, speed is not really as much of an issue as reliability.
For what they're doing, I'm guessing they don't need an Xserve or Mac Pro and probably don't even need to run OS X Server since they're getting by just find with the client version and the freeware SharePoints software. But, I would appreciate your advice.
Thanks,
Larry Jorgenson

Kevin,
They are running Retrospect backing up the Firewire Drive to another Firewire drive every night. On Monday, they swap the backup drive out with another and take it offsite. In case of a fire, they would lose maximum one week of data. In case of a hardware failure, they would lose less than 24 hours. For them, I think this is a pretty good strategy. I already had to restore their data from a backup about 1 year ago so I know they appreciate the need to have a functional backup system.
Thanks,
Larry

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