I have a Grizzly vaccum system that I have used for 8 or 10 years. I think mine is a 1 1/2 or 2hp. I would say the bigger the better. I use 4 inch pvc pipe to connect all my grinders, table saw, band saws, etc. I have gates on each tool. I also have a grounded copper wire run through all the pvc pipe to keep static electricity from blowing everything up.
I do use the vaccum when I grind steel. Under each grinder I have a T fitting. One end the the T catches the steel dust, one end goes straight down for about 2 feet and has a clean out plug. the other end is connected to the vaccum. Most of the steel dust and sparks go straight down into the clean out tube. My vaccum is outside my shop. I couldn't stand the noise, and vaccums also leak fine dust. all my machines connect to a 4" pvc pipe which goes verticaly up the outside wall, and then down to the vaccum. This vertical pipe also has a cleanout plug on it.
I was concerned at first that the steel dust would wear the vaccum out prematurely, but it hasn't.
You do need to be careful of grinding sparks setting the vaccum bags on fire, but my system has worked for me for a long time. I wouldn't want to be without it. It really pulls grinding dust out of the shop.
I probably have not explained this very well. If you are interested I can e-mail you some pictures. I would put pictures on this post, but sadly am not that computer literate.