I have been using Windows Home Server, running on a headless HP EX485 Server with (4) 1 TB drives in it to store all of my media. My problem was accessing the media from my TV.
Using a PlayStation works. However, having just got an Xbox, I have found that everything is much simpler and smoother. I strongly recommend using a home server for movies especially.
Here are some great resources outside of TechNet Wiki:
The original article was created by benne236.