Mac mini (plus usb hard drive if size isnt enough?)
connected to wired squeezebox 3, which in turn is plugged into an
m-audio 2496 dac connected to a marantz 66 KI Signature amplifer and
Mission 780 speakers. In a bedroom without any other pc present.  I'd
use the existing monitor and keyboard to set everything up, then move
the mac/sb3 into another room and use it there.

Would this be doable and how much would I be looking at to set it up?
Also using macs would I be limited to Itunes to manage cds or would
there be other programs I could use (I know nothing about macs).


Great idea !
Using a Mac mini will be very easy to setup, especially if you use iTunes to convert your CD and to organize your file and set the Slimserver to use iTunes (mp3 is not the best format but it's easy to use with the Slim) ; the complete setup after plugin your Mac the first time would be around 30 mn, even with some necessary Apple software update ; the ripping of your CD will take a lot more time after ! I would add an external firewire disk with the same mini look to have enough space for your future music. I assume you have another computer networked with your Mac mini : you can use VNC to access to your Mac so you don't need any monitor after the first set up.
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