My NAS is called DISKSTATION2 on my network, yours is called DS270. The distinction isn't important. From the point of view of the Plex server running on the device it is called volume1, and it can see any shares created in the device that it has permissions for.
In testing I created a new empty iTunes library in the folder D:\iTunes 4 Plex\ on my Windows 7 box, imported one album, and made a playlist of that album. I also signed out of the iTunes Store to avoid cluttering up the XML file with references to my purchases though I don't know if that is relevant for iTunes 10.7. I then made sure that iTunes was creating the XML file as this is no longer enabled by default.
In my case the first entry location in the XML file was <key>Location</key><string>file://localhost/D:/iTunes%204%20Plex/iTunes%20Media/Music/The%20Beatles/The%20Beatles%20(The%20White%20Album)/1-01%20Back%20In%20The%20U.S.S.R..mp3</string>
In other words the path above the artist folders in my case is D:/iTunes%204%20Plex/iTunes%20Media/Music (when spaces are replaced with %20) and this is going to be the search term I use later when massaging the XML. I called the shared music folder I created on the server Music and gave Plex permission to read and write to it using the Control Panel > Shared Folder tool.
I copied the artist folder from D:\iTunes 4 Plex\iTunes Media\Music into \\DISKSTATION2\Music over the network.
I then made a copy of the iTunes Library.xml file (as iTunes Library (Copy).xml), edited it using Notepad++ and used the Search > Replace function to change D:/iTunes%204%20Plex/iTunes%20Media/Music to volume1/Music and replaced all, then saved the changes. Making a copy to work with ensures that iTunes doesn't overwrite the file that I am editing.
Next I copied the XML file to the network folder \\DISKSTATION2\Music and renamed it as iTunes Library.xml. I was a bit imprecise with my comment about saving it earlier, but the upshot is that file is now available for Plex to use at the path volume1/Music/iTunes Library.xml.
In Plex I had to enable the iTunes plugin and then shut down and restart the Plex server in order to activate it. I then went into the Plugin settings to set the path to the XML.

I struggled a bit to get Playlists menu to show below Music in the Plex sidebar. Creating a dummy playlist and then refreshing all metadata appeared to do the trick. I then used the ⋮ menu to Import from iTunes...
First time was a bust:

But after using Music > ⋮ > Scan Library Files and then trying again I got this:

The display didn't update automatically so I had to switch to Music and back to Playlists to see this (after deleting my dummy list):

Hopefully you can see how to translate the various paths that I used so you can follow along with your library. If not then please post back with a <key>Location</key><string>file://localhost/...etc.</string> value from your XML file, along with the path to the same file when viewed from the perspective of Plex on the server, i.e. a path that starts volume1/<sharename>. With those two details I should be able to guide your use of Notepad++ to update the XML.
tt2