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Apple Developing a Home Media Server?

9to5Mac reports that Apple has been working on a home media server to access your iTunes and other files anywhere you have internet access. The site compares it to HP's just updated Media Smart Server which offers a centralized location for backup, storage and file delivery to your computers locally as well as remotely:

Your music, photos, videos and other media are part of your life -- but they're scattered over multiple computers, disk drives, CDs, DVDs, and MP3 players.... Macs and iPods too. The HP MediaSmart Server centralizes all your files, from all your home computers, in one place so you can grab them anywhere you have an internet connection and share how you want.

Apple's take on the system would reportedly expand out Time Capsule's functionality from being a single drive backup system into a more robust multi-drive backup server. In addition, tie ins would be made to Apple's MobileMe services to deliver access to your files and media from anywhere on the internet.

9to5mac suggests that media could also be shared to your iPhone and iPod touch, providing full access to your media while mobile. The device could also serve media files to other computers at home as well as to your Apple TV.