i tunes question

What I did was to get iTunes to import the music from the network store into its library (File | Import from folder if I remember correctly). It's a pain if the folder doesn't always map though.

Homeshare allows you to access your iTunes library over a home network. Personally I wouldn't bother.
 
As Glenboy says, no, they stay on the NAS but with a pointer to them in a file on your computer. I've got much the same setup as you.
 


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