Right, that spec is very similar to mine, but i think your h/w version is newer
You should find that the 500GB hard drives will be fine. You've probably heard of LBA-48 bit, ie drives >137GB, and with some of the older units, they do not have capabilities on the controllers for this. But the newer units do
Telnet and ssh i dont think so, the web interface is the main way, howerver, there is a debug console avaliable on
http://snapserver/config/debug
You are able to use a lot fo commands in that, and can do most things, but not all of the things
Web server, haven't really played around with, it is hidden somewhere on the os partition, which is hidden, and therefore difficult to access.
IF you were able to you would be able to add on to the web interface
But if you had it on a network, and portforwarded to port 80 (think thats http), you could access the web admin panel remotely!
If you wanted a box with telnet/ssh, the Linksys NSLU2 is a very good item, which i have 2 of, and can be obtained from ebay for slightly less than new, ~ £50. Only thing is usb hard drives/hard drives in usb caddies would be needed!!
You can also put applications on the device, to make it a lot more adaptable than the snap server
If you need/want snap os updates, please feel free to email or pm me and i will help you out.
Going to 3.4.805 or newer would probably be a help to yourself
Drive wise - DO NOT GET ATA-133 DRIVES
They sometimes work, but more often than not they dont
You seem to be 'IT Savvy', so you probably know that WD and Seagate are the better HD manufacturers. David has had great results with Seagate drives, and also some other people have used Hitachi ones to good effect.
I have a WD2500JB in mine, but i think that the unit doesn't really like it.
And of cause IDE drives!
Cheers
Sam
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Snap Server Help Wiki -
http://wiki.procooling.com/index.php/Snap_Server
Snap Server 2200 v3.4.807
2x 250GB Seagate Barracuda 7200.9
w/ UNIDFC601512M Replacement Fan
"Did you really think it would be that easy??"
Other NAS's
1x NSLU2 w/ 512mb Corsair Flash Voyager
Running Unslung 6.8b
1x NSLU2 w/ 8Gb LaCie Carte Orange
Running Debian/NSLU2 Stable 4.0r0
250GB LaCie Ethernet Disk
Running Windows XP Embedded