I am just getting started along this path. I was using a G4 but it died. Upto that point it was working well. I bought two USB drives and configured them in a RAID 1 mirror configuration. Once it died I went with a mac mini and the same drives. If you can afford it you might consider firewire external discs in the sam configuration. 1 Terabyte should last you a while. I am using apple lossless. Some claim no compression is best but others can't hear the idfference. I have just ordered a M2Tech Hiface USB to SPDIF converter to run to my PS Audio DLIII. So far so good. Check out computeraudiophile for great information. Good luck!