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Best media server setup?

Looking for advice on setting up a media server for the house.

We have two Windows PCs, a Macbook, a couple iPods, and a Google TV device. A 1GB switch and lots of good Cat6 connections in the house.

Wireless is not as solid, as its not in a great location (basement, where the cable comes into the house). Could get an extender, maybe later.

We have a bunch of media... mostly music and photos, but also some movies... sitting on two external drives that use SyncToy to mirror any changes from one to the other. Also have a bunch of DVDs I'd like to digitize so they're more accessible, and less prone to scratching.

I set up one of the PCs as a Plex server, to play content on the Google TV. But that requires it be up 24/7. And it's messy to use the external drives as a media source.

Can a NAS be set up as a server too? To run Plex or whatever?
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