Thought I'd throw my 2 cents in here.
I JUST got done building one of these for myself. I used an old castoff PC, loaded it with Linux, installed glirnath (a PHP based web jukebox), put some Harman Kardon speakers on it with a wireless ethernet card and I now have a portable digital jukebox, browseable and available from anywhere in the house. I can trundle it outside and put it on the picnic table or leave it in my office. No wires except for the power cord, local interface with a web browser or accessible from any of my PC's on my home network as well.
I also have it set up to autorip and encode CD's and add them to my local music, and can sync to my empeg directly from the box to transfer any new stuff I want. I'm QUITE happy with it.
Total price was next to nothing... bought an 80 gig hard drive at fry's and a new wireless NIC, then used an old castoff PC. Linux supports streaming audio as well, and there is plenty of support for FM tuner cards so I can either browse one of the billion or so icecast streaming radio sites (I have it connected to the internet through my firewall) or l can slap an FM tuner card in and use that... or alternatively when I get a TV capture card I can set up a Tivo clone using Freevo.
I'd be more than happy to give people pointers on how to do this, it was pretty painless.
-- Gary F.
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Eeyore, Original Owner -- Mk II 80 Gb, Blue
S/N #090000803
Tigger, 2nd Owner -- Mk IIa, 80 Gb, Blue
S/N #40103789