Using iTunes library from an external drive over wifi

Hello Community Peeps!
I'm looking for some advice and hope someone has the same setup that I'm hoping to make.
I currently have an iMac and recently had to replace the screen. As the machine is now out of warranty I'm thinking to sell it on before I get any further problems. I Currently have all my work and entire iTunes library stored on an external drive connected via usb to the iMac.
As a graphic designer i need to be fairly mobile and am thinking about changing my setup to this, so that when i'm in one location I can use a bigger screen and when I need to be out and mobile I can just take my MBP out with me and get by designing on that screen.
I am thinking of getting purchasing;
• The most powerful 15" MBP latest I can afford (probably with 2GB graphics).
• Separate 27" display to connect the MBP to when I am in one location.
• Airport base station (not time capsule) to connect my external drive to via USB to make it a wifi drive.
I already have Apple TV but have been told that in order to have my Apple TV access my iTunes library (on the external hard drive connected to the base station) over wifi I will need the MBP switched on and iTunes open. Thats no problem as long as I can do it over wifi.
I will be using the latest OSX and latest iTunes.
I have no since been told by a friend that iTunes has glitches in it and will be unreiable inaccessing my library on the hard drive over wifi.
So my question is, does anyone else have this kind of setup and what is their experience on itunes accessing it's library stored on what is effectively a wifi drive.
And advice gratefully received!
Thanks

That won't get your your "library".  Your library, in essence, is (was?) a file called library.itl in your iTunes folder.  This is a database with a listing of which media files you have and where they are, long with playlists, ratings, and a bunch of other things (which artwork goes with which album).  If all you have on the external drive are the media files then when your old computer died it took the library.itl file with it.
What are the iTunes library files? - http://support.apple.com/kb/HT1660
More on iTunes library files and what they do - http://en.wikipedia.org/wiki/ITunes#Media_management
What are all those iTunes files? - http://www.macworld.com/article/139974/2009/04/itunes_files.html
iTunes 9 [and later]: Understanding iTunes Media Organization - http://support.apple.com/kb/ht3847
Image of iTunes folder structure Dec. 2011 - https://discussions.apple.com/message/16923545
see also:
Image of folder structure and explanation of different iTunes versions (turingtest2 post) - https://discussions.apple.com/message/13025536 and https://discussions.apple.com/message/17457605
If you want your full library listing back then you will have to recover it from your bakup drive (which is why you have it).  Alternatively you can create a brand new library file, add the media to it, and start new.

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    What are all those iTunes files? - http://www.macworld.com/article/139974/2009/04/itunes_files.html
    Where are my iTunes files located? - http://support.apple.com/kb/ht1391
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    Image of folder structure and explanation of different iTunes versions (turingtest2 post) - https://discussions.apple.com/docs/DOC-7392 and making an iTunes library portable.
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