Best practice for server configuration for iTunes U

Hello all, I'm completely new to iTunes U, never heard of this until now and we have zero documentation on how to set it up. I was given the task to look at best practice for setting up the server for iTunes U, and I need your help.
*My first question*: Can anyone explains to me how iTunes U works in general? My brief understanding is that you design/setup a welcome page for your school with sub categories like programs/courses, and within that you have things like lecture audio/video files and students can download/view them on iTunes. So where are these files hosted? Is it on your own server or is it on Apple's server? Where & how do you manage the content?
*2nd question:* We have two Xserve(s) sitting in our server room ready to roll, my question is what is the best method to configure them so it meets our need of "high availability in active/active mode, load balancing, and server scaling". Originally I was thinking about using a 3rd party load balancing device to meet these needs, but I was told there is no budget for it so this is not going to happen. I know there is IP Failover but one server has to sit in standby mode which is a waste. So the most likely scenario is to setup DNS round robin and put both xserves in active/active. My question now is (this maybe related to question 1), say that all the content data like audio/video files are stored by us, (We are going to link a portion of our SAN space to Xserve for storage), if we are going with DNS round robin and put the 2 servers in Active/Active mode, can both servers access a common shared network space? or is this not possible and each server must have its own storage space? And therefore I must use something like RSYNC to make sure contents on both servers are identical? Should I use XSAN or is RSYNC good enough?
Since I have no experience with iTunes U whatsoever, I hope you understand my questions, any advice and suggestion are most welcome, thanks!

Raja Kondar wrote:
wht is the Best Practice for having server pool i.e
1) having a single large serverpool consisting of "n" number of guest vm
2) having a multiple small serverpool consisting of less of number of guest vm I prefer option 1, as this gives me the greatest amount of resources available. I don't have to worry about resources in smaller pools. It also means there are more resources across the pool for HA purposes. Not sure if this is Official Best Practice, but it is a simpler configuration.
Keep in mind that a server pool should probably have up to 20 servers in it: OCFS2 starts to strain after that.

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