heres how i connect HDDs, ntfs externmal usb hdd to pc or EEE then stream (wmp for all file types) wirelessly to elite or 160gb WD passport connected directly to elite for files under 4gb.
are you looking for NAS in corner or willing to keep your pc on. or for large storeage connected directly to the 360 take large external hdd then format to fat32 but only good if files are under 4gb, if over then you need ntfs which the 360 cant see.
i love my (red) WD 2.5" Passport its only 160gb but it can store enough and fits in your pocket and looks smart on top of the elite, same width as elite.
edit: ops forgot, with a nas you might need to hack/tweek it for software so a 360 can see, unless using a NAS on 360 changed since last year, correct me if im wrong guys.
thanks for the advise, i am looking for a nas, i just want to be able to put it under my router back up my pc content on it and with any luck get it to work with the 360 so i can watch stuff off it without having the pc on!
Tomd84 let me know how you get on and which drive you buy I'm having a nightmare with streaming films at the moment via my PC and was going to look into this option next or buy a sparate media streaming device altogeather such as the Netgear EVA8000, good luck!
It was a portable HDD connected to the USB socket of by BT Homehub. This seems to work fairly well (albeit a wee bit slow) as both PCs and my modded Xbox1 could see it, but the 360 couldn't (despite Windows Media Player being set up correctly).
In the end I decided it was too much hassle and I just connect the HDD directly to the 360 when my PC isn't switched on.