On mine, I set the option to turn off the hard drive, and it seems to work fine. Only drawback is a slight delay when accessing via the network, because you have to wait for the hard drive to come back on.
I tried the sleep setting, and the computer went to sleep fine, but there was no way to turn it on, other than pushing the button on the front. Doesn't work for me since I access it from work (I have ftp server on my windows machine pointing to the network share), but might be ok for you. Other than that, I haven't found any bad things using the power management, but I am sure it really depends on the system board/bios type.
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