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Multimedia-on-demand (MOD) applications have grown dramatically in popularity, especially in the domains of education, business, and entertainment. Current MOD servers waste precious resources in performing store-and-forward copying. This excessive overhead increases cost and severely limits the scalability of these servers. In this paper, we propose using the network-attached disk (NAD) architecture to design highly scalable and cost-effective MOD servers. In order to ensure enhanced performance, we propose a scheme, called distributed interval caching (DIG), which utilizes the on-disk buffers for caching intervals between successive streams. We also propose another scheme, called multiobjective scheduling (MOS), which increases the degrees of resource sharing by scheduling the waiting requests for service intelligently. We then integrate the two schemes and study the overall performance benefits through extensive simulation. The results demonstrate that the integrated policy works very well in increasing the number of customers that can be serviced concurrently while decreasing their waiting times for service. The performance benefits vary with several architectural, system workload, and scheduling parameters. We conclude this study by developing an analytical model for ideal DIG in order to estimate the performance limits which may be achieved through various optimizations.