Best storage solution for central itunes library?

I'd like to create a 4 Gb central library, running itunes permantenly on a headless Mac Mini. The library will contain all music and videos and should be available to an Apple TV, PC and Iphones (remote).
I am not sure about what kind of storage solution to buy.  I want a second disk for backups, ideally also for storage of system backups of my PC and iphones. Should I buy and install a NAS and connect via Ethernet or are two firewire or usb 3.0 external hdds connected to the Mac Mini a better solution? I want to avoid issues with corrupt itunes libraries, missing files, connection issues with home sharing, etc. And are external hdds built to run 24//24 in terms of life span, energy consumption and heating?
Thank you.

Derekeys wrote:
I believe there is a way to have my itunes library on an external, but can the iMac read the external and stream to Apple TV with quality?
No problems at all.
Get an external USB drive.
Copy the entire /Music/iTunes/ folder to the external drive.
Hold Option, launch iTunes, select Choose library... and select the iTunes folder on the external.
That is all you need to do.
You can do this with on the laptop and and later use the same iTunes library on another computer just by connecting the external, holding Option, selecintg Choose library... and selecting the iTunes folder on the external.

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