I use a mac mini running headlessly and wired straight to the squeezebox. Have about 350 albums ripped at 320 mp3 (80%) and flac (20%). Takes about 45gb of the 80gb disc iirc, so depending on what format you use, it should be enough space, but you can always expand if you need to. I didn't rip on the mini so can't comment on that - I just copied everything on to it from my linux box at home. The mac issues the ip address to the squeezebox and I have no internet connection to it (it's in a holiday apartment). System is set to sleep so squeezebox wakes it up on demand - i.e. when there's actually somebody there! Didn't even need a crossover cable. Very simple and effective solution.
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