I haven't made the jump to setting up network-attached storage. But with the Addonics Mini NAS being the size of a VHS, it's hard to keep resist giving up a small corner of my desk.
While the Mini NAS truly is small, it's got plenty of features in that one pound package. It supports both SMB (Server Message Block) and open source Samba network protocols, provides FTP access for up to 8 simultaneous users, and can be "configured Bit-Torrent downloading appliance or as an iTunes media server." Not bad for $70. [Addonics]