Apple Syncing iPod with network files

I want to finally set up a fileserver on my local network (just a few comps, but only mine would probably use it), and I'd like to offload all of my music and other media onto that box as well. Simply enough, can I sync my iPod with audio files that are on a networked drive (rather than a local one)? If so, would it be as simple as setting my iTunes library's folder to the network drive/folder?

Also, just as a slightly OT sanity check, would the following MB/CPU/case make a decent server "base"? MB, CPU, and case All I want is something with four SATA ports and a gigalan, and a decent case that holds enough hard drives with a 120mm fan, and the cheapest proc that'll handle it (I considered a 754/Sempron setup, but I lose dual channel and probably onboard video/gigalan so I probably won't bother)

Thanks