External Wireless drive for iTunes

I need to get my iTunes "lossless" off my crowded laptop and into a wireless drive accessible through my Squeezebox Touch/Media server setup. Any suggestions?
Two ways that immediately come to mind. The first is to get a NAS device. I use a Synology. If your wireless router has a USB port on it that supports drives, you can just use that.

The upside to going with a NAS device that is compatible with Logitech's server software is that you won't need to have a computer on all of the time. The downside is that they are relatively expensive. If you go with a NAS device, be sure that it meets system requirements. A speedy processor is good and at least 256mb of memory.
I've got mine plugged into the USB port on an Apple Time Capsule. Works great, too.