Please excuse the bump (a year and a half later!), but is anyone else who did the "home made expander" from Memory Express having trouble with the hard drives failing now?
I did one for my folks in February 2010, the hard drive has been on the fritz. Problems during playback, and a scan on my PC reveals some bad sectors which is the probably the culprit.
Now mine (that I did in September 2009 I believe) has died this morning. Must have been all of the Rugby World Cup I was recording.

Mine isn't even being recognized by the box anymore, and if I do a reset, the box hangs with the hard drive attached, but not when the drive is disconnected. It is also making some different-sounding clicks, so I'm willing to bet that it is toast as well.
At the time, expanders were $200 from
Shaw, and about $120 if you made your own. Now, expanders are $100 (although I got one for my other TV for $50 a few months ago). Oh well - it was worth a try. I'll be out $20 from the original cost from a couple of years ago after I drop $100 on a new one from
Shaw. Funniest part is, if I had bought the
Shaw version originally, they'd probably replace it for life under warranty.
One thing to note is that the newer, silvery-looking expanders from
Shaw have a fan inside them, whereas the Memory Express enclosures don't. The hard drive is spinning a lot, even when you're just watching TV (it records so you can pause/rewind live TV). It looks like the heat took its toll.