Meridian 500 or Squeezebox 3

As long as the SB3 is modded (add $s), it will sound sweet with the convenience factor of having your music collection at your finger tips :-)
Disclaimer: I have a Bolder's digital mod SB3 with PS MKII

Ethifi: The Bolder modded SB3 plus PS Ultimate MK II replaces a modded Rotel RCD-1070 with Superclock II, DBE digital output, Rubycon's caps, deadening damping sheets & diodes upgrades.

I have not side by side compare the SB3 to the "best of best" cdps but IMO, its right up there with them sound quality wise ie: the tweaked SB3 plus the PS. The tweaked SB3 plus PS is not cheap but it will cost much less than an equivalent high end CDP.

FYI, before I settled on the SB3 route, I auditioned flagship CDPs from Krell, Meridian & Cary.

I did mention the convenience factor is a SB3 added bonus, right:-)?

I agree with Cytocycle on the modified ps for the SB3. It's almost mandatory to make the SB3 sound great.

Nightcountry: Were you listening to a stock or modded SB3 when you did the comparison vs 500?

Thought I chime in again to refer you to an active thread in AC on the whys (& why nots) of the SB/server route
http://www.audiocircle.com/circles/index.php?topic=37203.0