Thank you one and all for your replies, I appreciate all ideas!
JonJ678 seems to have covered most of the bases on the previous comments so I'll post from that...
Hardware
I think building my own machine is definitely the way to go, so just to check what I would need:
Basically any low-mid range system would be fine for a RAID array?
RAID Question
I think RAID 5 sounds like a good bet, so if I want 4TB or storage I buy 5 1TB drives, is that correct? (and if I wanted to go mad and have 8TB I would buy 9 drives?)
RAID hardware or software
Seems to be a bit of a tricky one this...can you explain what the difference between them is?
I always thought that software RAID was the poor mans way of doing RAID. Several years ago I used to have a RAID 5 system and RAID 0 in the same machine. Both were controlled by the motherboard (built in RAID options) and the RAID 5 was continually falling over, and rebuilding itself took a flipping age and virtually ground the machine to a halt whilst it rebuilt.
My understanding was that a hardware RAID (from a dedicated controller card) was by far the better option, it was faster and more stable...have times changed or have I got that wrong?
Software
Tricky one this, and one that I have a couple of questions about...
FreeNas
I have absolutely no understanding of this, though I think I could learn it. This may be a completely idiotic question...but can Windows PCs see the HDDs setup in a FreeNas system?
Windows
This does sound like a simplier option...yes I do know Windows already...should I just buy a copy of XP/Vista OEM and set it up from there?
Anti Virus
I had thought that if it was on the network and shared then it would be exposed to any viruses etc...I run Kaspersky on my PCs now, if I had a Windows setup then I could install it on there as well...would FreeNas be protected from viruses as it's not a Windows machine (in the same way that Apple was virus free for so long)?
Automation
I don't need it to be automated at all, we work on the files/folders on our local drives then when we have finished, or need to archive anything they can be moved across to the NAS where they are automatically double backed up, that's the idea...about as simple as it gets really.
Linux
I hadn't considered that...I have breifly looked at Ubuntu once about a year ago, and it seemed a bit of a pain to get going, and rather unfamiliar (obviously).
Switching it off
It would be going in an office and I would be wanting to switch it off at night to help keep costs down...is that simple enough to do or are they designed/meant to be left on 24/7?
Problems
You mention that Linux is far easier to recover from...what sort of things can go wrong? I thought about the worst was a drive failing, but it could simply be taken out and swapped for another and all the data would be intact...am I being a bit naive there?
Limitations
With using XP machines, am I able / should I be making 2 2TB partitions? It would be easiest for me if all the computers can see the whole NAS and data can be copied into the appropiate place from any machine, security isn't important as everyone using the machines is trusted and competant.
Hardware
Phew...I think that's enough questions for one post...I'll come back to that in a little while!