21stHermit, build a white box PC based file server. If I were doing it, I would build it using Linux, software RAID 5, and serial ATA. A Semperon or Celeron motherboard/chip, 512MB memory, and Intel Pro/1000MT will get you the basic system. Buy a good power supply - Antec is safe, do some research on Seasonic and Sparkle or Forton for some other ideas - but in a big file server the power supply really matters if you want your hard drives to last. Get a big case with very good cooling, look very carefully at the cooling because again that really matters if you want your hard drives to last. If your budget is bigger, consider Supermicro's pre-integrated systems, they have motherboard, CPU HSF, case, power supply, and serial ATA backplane. They're more expensive than if you cut a lot of corners and did it yourself, but their stuff is really really solid and they've done the thermal work for you. You see a lot of Supermicro chassis in data centers.
Software RAID 5 and a Promise SATA controller will work pretty well, if your budget is bigger consider a 3Ware or LSI SATA RAID card (the Adaptec ones are junk, though). Drive wise, I strongly recommend the Seagate 7200.7 drives, but 'net reports on the newer/bigger 7200.8 drives are that they are not nearly as reliable. I have had a lot of problems with Maxtor recently and would rule them right out. Western Digital is okay, not great. Hitachi might be okay again, a lot of people like their newer drives, but after the whole IBM Deathstar debacle I'm not sure I'd trust that company's products even if it's owned by someone else.
Why a real server? Because you spend more up front, but then it's cheaper to add lots of capacity, mostly just adding drives. Also, you have some control over the software aspects of things, instead of being trapped on whatever firmware the vendor ships and whatever bugs/limitations that has.
I would put a server on 1000BaseT serving SMB/CIFS and/or NFS depending on your desktop OS of choice.
Oh, and think carefully about how you are going to back all this up. One solution that's expensive but not all that crazy is to build yet another file server. If you have the bandwidth, consider putting it somewhere off-site. Backing up a couple of gigs isn't cheap!