Making a PC into a digital CD Jukebox

I am thinking about getting a high end PC and using it like a CD jukebox. My plan would be to get a fast PC with LOTS of disk space and memory, then rip all my CD to disk. This way, I'd be able to create play lists using Real or something like it. I would connect the PC's audio output into my receiver's CD or AUX input. My question is - is the sound card in the PC capable of producing reasonably high quality sound reproduction? I'm not an audiophile, but I do want to make sure I'm not taking a step down from a regular CD changer.
First, you don't need a "high power" pc to rip music. Second, The soundboards built into motherboards can leave a lot to be desired. Check out the M-audio soundboards.

I currently have about 800 CD's ripped to an external 200GB HD using lossless compression. It's fine for listening at the pc (b&W speakers, monarchy amp, energy sub) but I wouldn't want to listen through the big rig.

Good luck,
Try a Squeezebox from Slim Devices. You can use either lossless (WAV, FLAC, AIFF) or lossy (MP3, AAC) music formats, and the sound quality can range from decent using the unit's analog outs to excellent if you use the digital out with an external DAC. A high powered PC is not required for this, but lots of disc space is mandatory if you choose to use lossless formats.
Squeezebox is so last-month. Check out Apple's Airport Express.
How many CDs are you talking about ripping and what level of sound quality do you desire? Also does your system have a high quality D/A converter with external inputs? Your answers are important because you can configure a computer to achieve adequate to outstanding sound quality, it's a question of desire and money.
I Plan to rip about 100 CD's. That's the amount I have now. If it goes too much beyond that, I will "age out" the least used. My system does not have a D/A converter. The quality I'm after is somewhat subjective, but let's see if this provides some perspective. I'm currently using a Yamaha receiver that cost around $750. It's got a Yamaha 5 CD carousel. I have Polk Bookshelf speakers; around 8" I think. I recognize that this isn't top end, but I'm content with it.
Computer based juke boxes are far and away the best way for a music lover to access their music collection. The key to such a system is the software and how well it integrates with your computer hardware. I believe the Apple iTunes software and any of their G4 or G5 computers is the current top of the heap. 100 CDs with no data compression will require approximately 65Gb of hard disk space. Loseless compression, a standard feature of iTunes, can cut this requirement in half. If you use a G5 model computer you can use the built in analog line output. If you want a step up you might consider one of the USB based D/A converter such as the M-Audio Transit. If you desire even better quality sound, then I would recommend using an external audiophile oriented D/A and connect it to the G5's built in digital optical output. The same comments apply to the G4 series except it doesn't have a bulit in optical output. The G5 model is substantially quieter than the G4. Each can come equipped with a DVD player/burner which can serve as an excellent DVD player in a HT setup.
Guys, I'm curious. ...this is an audiophile board, but everyone seems to be recommending the M-Audio soundcard to hook up to mega-buck systems. Is the Transit that great? I know that over on, the emu1212 seems to be regarded as the best sounding solution.

Anyway, I have a lot more to post on this subject, but I have a test in 40 minutes that I should probably be studying for.
I've used a number of USB audio devices, including the Stereolink, the M-Audio Transit, the M-Audio Sonica and the Edirol UX something-or-other that is currently hooked up. Obviously, I prefer the Edirol, which seems less buggy on my XP box and has the benefit of a coax output that goes neatly into my outboard DAC. I haven't extensively auditioned soundcards with DACs built in, but it seems like inside a computer case is a lousy place to do DAC conversion. The Edirol sounds great hooked up to my Theta Pro Basic IIIA and run into a relatively higher end system (ARC LS16-II, ARC D400-II, ProAc RS2s).

If you are going to go the compressed audio route, I highly recommend finding yourself a copy of EAC, which is shareware, and regarded as the best ripper for the Windows environment. Then get yourself a copy of LAME to do MP3 conversion. I rip using the "alt preset extreme," although others seem to believe "extreme" is no significant benefit over the lower alt preset setting. It will take a long time to rip your CDs--took me months of one here, one there to get the job done (over 1K CDs, however). Once done, I opted for an external HD to back the stuff up onto--I do not want to go through that again...

It is enormously convenient for background music, however. I'll warn you, you will also have some fun trying to categorize everything rationally... Does early Dylan go under folk or classic rock? If Dylan is folk, where do I file Townes Van Zandt? If Townes Van Zandt is country, what do I do with Lone Justice? Aie. Hurts the brain.
The M-Audio Transit isn't some sonic giant killer, but it is a reasonable sounding product that works exactly as advertised at an honest price. For less than $100 you only get some much.
g5 + decent optical cable + bel canto dac 2 (auditioning) is what i'm using as source right now and i'm quite happy. iTunes lets you rip to full AIFF uncompressed, using error correction, and apple's audio/midi utility lets you insure 16/44.1 raw output from iTunes via the optical port, so you keep everything as 'original' off the disc as can be til it hits the DAC.