Best practice to setup media server/central location for Itunes, Iphoto

Hey guys,
I currently have a Airport Extreme w/ two Western Digital My Books connected that have my Iphoto and Itunes Library.
This is not ideal since copying things over the network is extremely slow and accessing the media(especially photo librarys) is super janky and leads to disconnects often.
I am looking to revamp my setup. What do you guys recommend?

Should I just get a Mac Mini and connect it to the Airport Extreme?

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I was wondering what the best way to achieve a central media server for all my iTunes content + iPhoto's, calendar syncing and contact sharing is? This is what I currently have:
iMac 20" Aluminum + External HD Backup (kids)
Macbook Black (wife)
Macbook Pro 15" (me)
Airport Extreme 802.11n (obvious)
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I would like to replace my PC in my office with a brand new Mac Pro Nehalem 8-Core, 8GB Ram, and 4TB, and replace my PC laptop in my living room attached to my tv, with an Apple TV.
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I want to be able to stream everything from my living room via Apple TV for when guests come over, dinner parties, etc. (plus I love apple and it keeps things clean)
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Also, I'm hoping Snow Leopard has some changes to iTunes to make this a little more possible, since we're right around the corner from this release. I don't really want to spend an additional $900+ on Snow Leopard Server to have to achieve these results, but if it makes it easier, and does the job, then I guess I might. This is all speculation though, since it's not out yet. I'd like to get this all sorted and setup within the next month.
I was considering a Drobo, they say they can throw up iTunes Server but, I appreciate everyone for reading this, and taking the time to respond!
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Message was edited

I'm in the process of setting up a smaller (and cheaper) but somewhat similar setup to what you want to do, so maybe one example might help point you in the right direction. My needs consist of a centralized location for data storage, which will include iPhoto libraries (I keep two separate ones), iTunes (which I also want served to the home theater system), something other than my laptop to play internet videos and downloaded content on my TV, all with ideally the lowest cost and energy use possible.
My solution was the new Mini with a FW800 external drive as the server/media hub and Airport gigabit as the network hub (it also handles the backup drive).
FW800 is fast enough to saturate a gigabit ethernet link, so I don't consider that much of a bottleneck. The Mini then has iTunes running at all times with its centralized library on it; it is hooked to the home theater via HDMI-DVI video and optical audio, so it can play music and also handle videos when desired; Front Row with the Apple remote is close enough to an AppleTV that I think it handles that well, and it's more full-featured than an AppleTV. It can further be used to display photos/slideshows/whatever on the TV for guests or such, or to surf from the couch with a wireless mouse/keyboard. You can also toss in an EyeTV for $150 and use that as a DVR if you feel like it.
When I want to edit photos or such on my desktop, the gigabit link is fast enough that I can run iPhoto without noticing any significant slowdown. Its also usable over wireless, though I have a dangling extra network cable to plug into a laptop for full gigabit speed if need be. iTunes, of course, shares its library, which can be played from any of the computers in the house if so desired (iPhoto can do that too if you just want to display).
If I REALLY wanted top speed (though I've even done video editing in iMovie via ethernet without issue), I could use a third party synch app (I like Sync) to mirror any of the content from the mini server to a local drive; this works fine with anything but multi-way synching, such as address books being modified in different locations. I'd probably try to set up one of those Mobile Me clone systems or use a 3rd party app if I needed to do that.
Again, maybe this isn't powerful enough or "synched" enough in terms of local storage for your taste, but the advantage is that a Mini uses a minute fraction of the power of a Mac Pro, so you're saving a lot on electricity if the computer will be powered up at all times as a server, and it's also a lot more full-featured as a home theater media hub than an AppleTV. And, heck, the thing is about as well equipped as my old top-of-the-line G5 tower for a 5th the cost and 1/15th the power and noise.

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Best practice to setup media server/central location for Itunes, Iphoto

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