Power Supply does matter, but PiCorePlayer hardly puts any stress on the CPU of the Pi, so there is no need for that much power. As long as your phone-charger can manage a stable 700mah you should be fine. SD Card is not a big deal for PiCorePlayer either, because it runs from RAM. 256MB should be fine too. Grtting HDMI audio or USB audio to work flawlessly is sometimes a bit tricky. Like I said, those "blips" you're hearing were due to the Alsa settings in my original setup. With Hifiberry Dac/Digi/Amp all those problems go away. As long as your LMS device can handle the streams and you have enough Internet/Ethernet/WiFi power everything can be made to work. USB sound is the biggest hassle, followed by HDMI and then Hifiberry, which just works once you've connected it.
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