I envision backing it up by attaching a FW drive to a local Mac, or using a two-drive NAS box and the second drive be the backup. Somehow.
ACLs are Access Control Lists, Unix, but available in OS X since Tiger. They allow more fine-tuned control over file permissions than does the Finder. Specifically, they are the only way to completely allow multiple users on one Mac to seamlessly share the same iTunes or iPhoto Library such that when one user makes a change or deletion, the other can not only see that change or deletion but also perform their own.
So yeah multiple users read and write to the same library without screwing up the other users. Even better, each user retains their own application prefs. It's only the libraries that are shared. Been doing this for the last 3 years or so between two users on the same Mac because my wife and share all the same music and photos. iTunes and iPhoto libraries are on another hard disk.
http://ad.hominem.org/log/2005/07/acl.php <<< old thread, and it says it doesn't work with iTunes but it does.
Edit: Caveat: Only one instance of iTunes or iPhoto may be running at one time. So if my wife forgets and leaves iTunes running and I switch over to my account, I can't launch iTunes unless I first go back and Quit iTunes in her account.
With both of us sharing the same Mac that's not a real hardship. If we get our own Macs, which might happen soon, it could be more of an issue. I also see the day when we'll want music in the living room without shutting out the other downstairs wishing to hear something different.
Blazing speed isn't very important. Last weekend I had a 350Mhz G3 (but with a 7200rpm drive) share its iTunes over 802.11g and it was very fast when accessing songs on the other Mac. If a NAS can do that, it'll be plenty fast.