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I have a 4th gen i5 and it can handle about three transcodes concurrently. You should be fine on that, especially if your users direct stream.
These devices should be capable of direct streaming any video format. You'll have to tell your users to change their streaming settings to always play original quality on remote stream. Plex defaults to 720p for remote streams.
The 256 GB should be enough. My Plex folder uses about 90 GB right now with all the posters and stuff. It's been running on a SATA 256 GB SSD for almost 7 years now. My library is also pretty large, pushing 8 TB total now.
There's no harm in keeping it in.
You are a godsend. Thank for you for the really cogent advice. Setting up Unraid now.
How is your Plex install so big? My library is like 6x larger and my Plex install lives in a 24GB VM
🤷♂️
I don't know lol