I've run 2 SqueezeBoxes plus SoftSqueeze on a LinkStation HG, which has more RAM and a faster processor than the MIPS versions. Most of my collection is FLAC. Synchronization is hit or miss, depending as much on overall network traffic as on the power of the NAS (e.g., sync'ing often improves if I switch off non-slimserver computers with wireless connections). I would bet it could support 4-5 SBs as long as they were separate streams.
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