there are other solutions out there that don't require an iPod or computer. I've been looking at the Western Digital TV which is about $100 and connects directly to a usb hard drive. Unlike the Wadia, it must be connected to a TV but also plays high def movies.
http://www.wdc.com/en/products/products.asp?driveid=572
http://www.wdc.com/en/products/products.asp?driveid=572