USB Drive speed vs. LAN Network Drive

I am going to purchase a new external drive to connect to my Airport Extreme Base Station. I keep my music and photos libraries on this drive. I have been looking at "network" drives that work through the LAN port on the AEBS and USB drives.
Which of these will be faster, will be a more reliable connection and will be recognized by iTunes and iPhoto as the library when I open the applications??? I currently have a USB drive hooked up to the extreme and I have to go into my network, connect to the drive before I open iTunes or iPhoto for the applications to locate the libraries on the external drive. This wasn't the case before Leopard and I want to avoid having to do this.
Thanks,
Peter

I have set this up a few times, here is what I do:
To change your iPhoto Library, first make sure iPhoto is closed. Then, you need to locate your current library in your Pictures folder and change the name. I usually just add a in front, so it will be called "-iPhoto Library".
Then, open iPhoto. A window will open asking you to locate your iPhoto library or create a new one. For this first time, you will want to create a new library. Another window will pop up and you will want to chose your external drive and make a folder for your iPhoto library. After you do that, then, you import your old library into your new one.
Now the difference between iTunes and iPhoto is that if your library is not found, iPhoto asks for you to find it and iTunes automatically makes a new one in the Music folder. And this is my problem. I have to manually go in an change the folder in iTunes preferences all the time since upgrading to Leopard. Unless I manually click on my external drive and access the iTunes folder before opening iTunes.
But it shouldn't be that way. If Apple moves to flash drives on their laptops and keeps making us more and more dependent on external drives, they better come up with a more reliable way of making their applications work with these drives.

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