What is your budget for this??
My newfound favorite storage is NAS (Network Attached Storage). I have a DLink DNS-323 connected to my router, and it has two 500 Gig Seagate drives in it running in RAID1 (for redundancy). I got the drives for about $300 total on Black Friday, and picked up the NAS box for about $220 in January...
DNS-323 is $190 on newegg - Newegg.com - D-Link DNS-323 2-Bay Network Storage Enclosure RJ45, USB 2.0 - Retail
It is a BYOD box (Bring your own disk).
Then any ole SATA drive will work with it, capacity is 2 drives.
No matter what you end up doing, I suggest getting a Seagate hard drive. They are #1 in the industry, and ALL of their drives come with a 5 year warrenty.