[dave_c]

I think the Linn server came out first, but this is on another level:

http://www.badaweb.co.uk/uniletsoundandvision/news11.html

[R_burke]

I've heard about these, but also heard that they make a lot of noise due to the fans that are necessary to keep the drives cool.  Never heard/seen one myself, but the idea is definitely gaining momentum.

Guess you could run some long cables and keep the server in another room.