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We run a large hardware RAID-5 (2TB) for all of our video files, three software RAID-5s (Buffalo Terastations) for our still archives and crucial business files, and single drives on the individual workstations, which generally don't have anything crucial on them.
The machines that do video editing and rendering are all connected to the hardware RAID 5 by a gigabit network, so there's very little speed degradation from having the drives on a different machine than there would be having them on the local workstation.
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