Squeezebox Duet + inexpensive stand alone server

I have finally added wireless digital to my vinyl/Cd system.
Love it! Dell PC + Duet + Linn 5103 DAC + ipod touch controlling 3 areas.
Have downloaded 100 albums AIFF onto my PC and am now panic stricken in case of hard drive failure.
Would like a stand alone server (cheap pc?) with 1 TB storage and same as back up.
It should be in a separate room and operated by my PC or Controller or ipod Touch.
It can be on 24/7.
Just audio usage.
Thought I was going with a ReadyNAS but read so much about slowness and issues with Squeezebox I'm very hesitant.
Read lots about Atoms and build your own but it just gets so complex so quick and the jargon goes way over my head.
Simple is better and I have $600 burning a whole in my wallet.
Help needed!
Hi Clarets2.

You have many options, so I will report only what I chose. I started out thinking I needed a NAS, but in the end I just went with a PC. I am glad that I did because the added CPU power relative to a NAS helps Squeezebox Server run smoothly.

I bought a "barebones" kit from Newegg, which is a box, power supply, and CPU. I went with an Atom 330 processor because they are energy efficient and plenty powerful to serve music. Today I might go with the Atom 510, which is newer, but anything similar power-wise will be plenty of CPU.

To that, I added a 1 TB hard disk, 1 MB of RAM, and a DVD drive, as I use that machine for ripping CDs. I also bought a USB HD to use as a backup for my music.

To that, add your operating system of choice. I use Linux, where 1 MB is plenty, but if you go with some form of Windows, get more RAM. Connect the box to your router, install SB Server, and you should be on your way.

A friend recently bought a Dell Zino that was on sale, came configured better than I described above (it's not an Intel Atom processor, but it's AMD's equivalent), and works very well. Cute too.

If you don't like the idea of putting something together yourself, the Zino is a nice solution for a better than fair price.

Again, there are many viable options. Have fun.
Love your Zino reccomendation.
What specs will I need over the basic model . I'll go for 1TB storage. Any other upgrades beneficial or is the rest marketing?
Audio only usage for me.
For audio only, essentially the only program you'll be running is Squeezebox Server, so I suspect the basic hardware configuration (entry level CPU, 2 or 3 MB RAM, HD of your choice) will be more than up to the task. Salvage an abandoned monitor and keyboard and you be off and running in no time.

My friend opted for the wireless card, but you're probably better off it you can wire it to your router.
I use a Vortex Box as a server for two Squeezebox Touches and a Duet. Works great.

After long research I went the VortexBox route. Will have it up and running next week.
Loved the tailored aspect to my audio needs, great value and the forum support. Also wanted to support this audiophile effort!
Does anyone use it wireless?
Any hints for the uninitiated?
I do most of my burning on a Windows PC using MediaMonkey, and then copy it over to the VortexBox. This gives me more control over the tags and cover art than using the VortexBox built in burner. The server sometimes comes up with odd choices for art if you let it pick.

Other than that, no real issues. I started out with about 500 CDs burnt to flac on my older server, and copying them over to the Vortexbox and then reindexing the library was simple. I use mine on a home network with both wired and wifi connections to different Squeezeboxes, and all connections are good. I'd think that has more to do with my router than the Vortexbox, though.
They have stopped making the Duet and to coincide with that, they have released a new version of software that makes it virtually unusable. At least if you run a Mac computer. ALWAYS WAIT TO DOWNLOAD THE MOST RECENT SOFTWARE UPDATES FOR ANY OF THESE PRODUCTS AND READ THE FORUMS AFTER THE UPDATES HAVE BEEN OUT.

Just like with Microsoft updates, they are usually only partially ready for prime time and cause more problems than improvements delivered.

Until I updated the latest 7.6 Duet software, it was the most enjoyable and convenient music device I have ever owned! It no longer even plays a song!
I used to run the squeeze server on my Acer Aspire Home Server machine. It ran ok most of the times. However, I did have some waiting time when I play "Music Folder" option especially when the folder has a lot songs in it. I finally moved the squeeze server to my more powerful desktop and everything is available instantly :)
Ckoffend, yes, lots of people having trouble with 7.6. I have not had to do this, but you can revert to the previous version of SBS, which should put all back right with the world.