It's a centralized file repository for the various computers around my house. It's also used for Time Machine backups on my two Mac minis, a network drive for my AppleTV and as a 24/7 bit torrent box.
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Just looked up the NS-K330 and found it for $41! Now I have to get one just to screw around with. I wonder if SnakeOS supports mplayer and/or lame (or an equivalent.)
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$41 seems a bit expensive, I picked up mine off Ebay for $35 shipped. The drive was $150 though. I'm not sure what you mean by mplayer/lame support, there are no audio or video outputs. It should stream without a problem though after adding the correct software. There are a bunch of debian packages available.