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can't believe you haven't gone for redundant storage
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With the number of DVDs you have, you really only want to rip them once. If one of your Buffalos dies, that's a lot of ripping to go through again.
A proper multibay NAS like the Netgear ReadyNAS range would, IMO, have been a safer, albeit more expensive up front, option. They do 4 and 6 bay models, which offer RAID redundancy, hot-swapping of failed disks, and hot-swapping to larger disks, one by one, to increase storage.
Anyway, an interesting read. Thanks for taking the time to write up your experiences.