I do not want to move the file to my computer to view it. Wouldn't that be a file share? Id like for all the files to stay on the pc and stream videos/music to both my mac and my friends mac at our houses.
Nope, What Remi seems to imply (he's very vaige and expects you to know a fair amount about networking, VLC and other tech terms etc,in all his sparse answers here you might notice
e ) (and what im adviseing here)is that you setup a totally seperate interconnected (wireless)LAN line between you and your friends simple FreeNAS (Network Attached Server) with all your files on there and share them over that link.
why do i say a seperate LAN, because you may want to power down your main home LAN PC's when not in use, but always keep the freeNAS LAN files available to your friend and any temp wireless laptops you might have.
its pritty simple assuming you and your friends are within wireless or wired reach of each other, given your talking rather large binary video data store,all you need is say a "freenas" liveCD
http://www.freenas.org/ and spare PC with populated drives at both locations, 2 or more old wireless 11g (15-20Mbit/s average max) or the far better and faster current data throughput "11n" (60Mbit/s +) wireless routers setup for light wep security so as not to overload the wireless routers CPU's processing and pushing through the large video data streams, helping keep video streaming stalls down to a minimum.
your-mainLAN-192.168.0.*<===>Freenas-10.0.0.*<=>your-wireless-router<--wireless-*WDS->his-wireless-router<=>freenas-10.0.0.*<===>his-mainLAN-192.168.0.*
you might prefer to hard wire the two wireless routers together though if your within 300 feet, as that makes it slightly easyer as the data is flowing over the wire not the wireless sections.
place the wireless routers high up in your houses, say your lofts, as they will have clearer paths to follow and so far stronger signals and far easyer to route any ethernet cable on a permanant basis.
*WDS stands for Wireless Distribution System, a simple way to connect two or more wireless routers without using direct ethernet wires, it does take some wireless bandwidth away from your data streaming for it's use though.
the end result, your mass storage freenas expandable servers and routers are all up high, and out of the way, and any time you want to see any VLC streams stored on any/eather freenas PC, you simply connect to your local wireless router, and can see all the visable freeNAS on the 10.0.0.1 community wireless network you and your friends have setup cheap and easily.
OC you then have the massive advantage that any of your other friends locally within reach of the routers, can also setup their own FreeNAS/wireless 10.0.0.1 in their lofts, spare/bed rooms etc, and simply join your small and growing community (wirless)LAN and start pooling all your/their seperate FreeNAS storage for the common good and use.
you should also think about using "multicast" addresses and placing announcements on each one, so you and your band of wireless brothers can easily see, connect to ,and watch a single currently playing /upcoming stream "at the same time", if nothing else but to save wireless bandwidth if more than one single person wants to see the same video data OC....
just so we are clear, when you say "move the file to my computer to view it" you are moving the file to your local PC temp folder, every time you play/stream it,(just as you copy the webs pages before your bowser put it onscreen) but you DO NOT Need to pre copy it before hand, or use up more local HD space than is needed to buffer the streaming...