The scare with my laptop mad me want to get better with our backup situation. So I decided to get a Network Attached Storage drive for this. Also a Newtork Attached would allow us to store media off of the small Mac mini hard drive.
I got the D-Link DSM-G600, as it stated that it was compatible with Mac OS X, and a a 400Gb drive. The instalation was a breeze. Just insert the drive, and boot it up. Then you determine what ip address it was assigned, and then use a web browser to go to that ip address. The resulting page had a button to format the drive. Once that had finished, everything else was pretty self explanatory.
While I was in the testing using the NAS for video, copying the aliases for the movies into ~/Movies didn't work. This post describes a way to get this to work. I copied an alias to the folder on the NAS that contains the videos into the ~/Movies folder.