Which NAS Solution would be best for my scenario

We are starting to amass quite the collection of photos, videos, etc and it just doesn’t make sense to burn them to DVD’s for the sake of Archiving. What I’d like to do is set up a NAS system to be used for storage of important media (home videos, photos) as well as entertainment media, movies, music, etc. In a perfect world I would like it to be as follows:

2 bays is enough
RAID 1 (complete mirror), unless there is a better RAID for mirroring
I want it to be network attached, but have the ability to be directly viewed via USB or eSATA so I can play the videos and movies on my ASUS O’Play via the USB or eSATA port.
I would like to be able to increase the storage capacity by incremental adding larger drives if needed. For example, if I start with 2 x 500 GB drives and want to go to 2 x 1 TB, I would like to be able to install one of the TB drives and have the mirror rebuilt and then install the second TB drive and rebuild the mirror now having a capacity of 1 TB. (Make sense?)

Any suggestions would be greatly appreciated.
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More about which solution scenario
  1. I use the ix2-200 from Iomega, and I've set it up as a RAID-1 mirroring using 2x1 TB.

    I'm happy with its performance over my Gigabit network, good read and write performance. Low power consumption, I've measured it around 17W. Temperatures are also well under control, I rarely hear the fan kick in, and even then its very quiet. Some issues I have noticed:
    * It has USB ports to connect devices, but transfer speed is pathetic, only around 2 MB/s. Its faster to connect the device to a PC, and transfer over Ethernet.
    * My unit came with Seagate hard disks, and it is very noisy during seeks. You definitely don't want this in your den.

    You can upgrade the capacity the way you've mentioned. Only thing is it doesn't support USB/eSATA connectivity the way you want.
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