Best way to store and access all my media over network?

With nearly 500GBs of music, movies and TV in my iTunes library, my G5's hard drive is just about full. And since I tend to watch everything on my significantly faster Macbook Pro via Front Row, it means I have to keep my G5 up and running all the time. Which feels like a huge waste of energy.
So... what's the most efficient way to store and access my media? Here are some ideas off the top of my head. If anyone has any better ideas, please share...
IDEA 1: BUY A TERABYTE EXTERNAL DRIVE AND CONNECT TO MY AIRPORT EXTREME'S USB PORT.
Pros...
1.) No need to keep my G5 up and running all the time, just the router and the external drive connected to it.
2.) All media stored in one iTunes library which can be accessed by any wireless Mac on my network.
Cons...
1.) I have no idea if this would even work.
2.) Would the USB connection be fast enough to play HD content?
3.) Would the Extreme's b/g signal be fast enough?
4.) Would my Macs even recognize an iTunes Library on a USB hard drive connected to my Airport Extreme with no OS of its own?
5.) Even if it were fast enough, could two separate Macs share the same iTunes library?
6.) I'd have to lose my wireless printer, which currently occupies the single USB port in my Airport.
IDEA 2: BUY AN APPLE TIME CAPSULE AND USE ITS INTERNAL DRIVE AS MY ITUNES LIBRARY
Pros...
1.) The internal SATA drive will certainly be faster than any external USB drive.
2.) Get to keep my USB port for wireless printing.
Cons...
1.) Still don't know if it would work.
2.) Would not be able to take advantage of faster 802.11(n) speed, as my G5 tower is b/g only.
3.) Pricey. $500 for a Time Capsule seems excessive not being able to take advantage of n speed boost.
IDEA 3: BUY AN APPLE TV
Pros...
1.) I could watch HD content on my beautiful 30 inch Apple Cinema Display!
2.) I could access all my content wirelessly through my network.
3.) I get to keep my wireless printer wireless.
Cons...
1.) I don't own a TV.
2.) I don't know if Apple TV will even play on my 30 inch Apple Cinema Display.
3.) I don't know if my Macbook Pro will play files from Apple TV.
4.) Apple TV doesn't come with a Terabyte hard drive.
5.) I'm not sure I really understand what Apple TV is. (With a 30 inch Cinema Display, doesn't buying a TV seem redundant?)
IDEA 4: SELL MY G5, BUY A TIME CAPSULE, AND HOPE NO ONE EVER STEALS MY MACBOOK PRO.
Pros...
1.) Can take advantage of that speedy wireless (n) network.
Cons...
1.) Still don't know if a wireless iTunes library stored on a router would work.
2.) What will I do with my 30 inch Apple cinema display?
3.) No backup computer if something ever goes wrong.

Perfectly possible:
Make sure the drive is formatted Mac OS Extended (Journaled)
1. Quit iPhoto
2. Copy the iPhoto Library from your Pictures Folder to the External Disk.
3. Hold down the option (or alt) key while launching iPhoto. From the resulting menu select 'Choose Library' and navigate to the new location. From that point on this will be the default location of your library.
4. Test the library and when you're sure all is well, trash the one on your internal HD to free up space.
Back up to the 2TB drie:
Most Simple Back Up:
Drag the iPhoto Library from your Pictures Folder to another Disk. This will make a copy on that disk.
Slightly more complex: Use an app that will do incremental back ups. This is a very good way to work. The first time you run the back up the app will make a complete copy of the Library. Thereafter it will update the back up with the changes you have made. That makes subsequent back ups much faster. Many of these apps also have scheduling capabilities: So set it up and it will do the back up automatically.
Example of such apps: Chronosync - but there are many others. Search on MacUpdate or the App Store
Regards
TD

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