If I use Photoshop Elements and Premiere 8 (but could upgrade to 9), which is the best strategy for media file locations please?

a) Put them all on a NAS drive with a gigabit ethernet connection from the NAS & editing PC?
b) Put them all on the editing PC drive and copy them to the NAS for DLNA sharing?
c) Put them all on the NAS and make that available off-line to the editing PC?
d) Put them all on the editing PC local drive and use Windows workgroup sharing from the editing PC?

All PCs will be Win 7 64 bit Home Premium and I might even upgrade them to Ultimate.

Would appreciate any advice.

I'd put copies on the NAS, keeping the original on the PC.

I have all my data on my PC, my iMac and copied onto a NAS. both Mac and PC have external drives for TimeMachine/Acronis backups. The iMac is then backed up into the cloud.

I go by the 3-2-1 rule. No file is backed up until there are at least:

3 copies
on 2 different medium
and 1 off site.

Thanks big_D, that was my instinct too. But I just wanted to do a sanity check. Thanks very much