Local network HiRes storage and player

@larryincmh I also find LAN filters effective but this doesn't address the streamer with internal hard drive issue. I've found that minimizing noise at every single component and interface in streaming chain is necessary for obtaining full potential of that streaming setup. As for that streamer with internal storage, one could provide maximum shielding from hard drive and separate processor and power supply for that hard drive, anything else will be a compromise.

I've also found drives do provide variable sound quality, reliability and durability also critical here.

@sns I am currently using WD Red NAS drives and honestly didn't research much before purchasing them what the noise levels might be for those.  I have been mildly interested in the Synology branded hard drives but have not had occassion yet to purchase one as my current drives are just a year old.  I did just do a bit of a Google search and of course it says that the WD Pro drives are noisy LOL.  Now that might be all I notice when streaming.

@hifi_jed_1986 

Like some others have said, I initially had my music files (all FLAC) on the hard drive within my Aurender server/streamer. Then purchased a Synology NAS and loaded all of my music files to it..

A noticeable improvement in sound! Straightforward transfer of files, and be able to manage everything via my computer on the local network another plus.

    -GAR

The largest determinate of the sound characteristics of streamed files is the streamer. A very high quality streamer (like Aurender... the higher tier the better) the better the sound quality will be. I cannot tell the difference between locally stored on my streamer, on my NAS, pocket drive, or streamed files from Qobuz when it is the same version of an album. Often streaming sounds better because a high resolution version of the album is available on Qobuz. 

The key to sound quality is the streamer, not all the tech supplying it with bits, unless one uses a steamer not appropriately matched to your system... (inferior). 

@hifi_jed_1986 

I have not seen answers to my questions about Roon and your budget, but I will go ahead an answer your questions:

1. What is best way of doing this device wise (separate everything or combine),
2. what devices are you using, and lastly
3. are FLAC files the ideal format to store or is there something better?

Answers, IMO:

1. While some methods may offer better sound, some better reliability, and some may be better than others based on the size of your personal library, there are multiple methods of storing "high resolution music files locally on your hardwired network and playing into a stand alone DAC".  There is no one "best method" as several of the potential set-ups and a variety of different equipment could be used to provide a high resolution digital signal to your DAC.  As mentioned by @ghdprentice, it is also my opinion that, relative to that digital chain (i.e., prior to the DAC), the streamer has the most influence on the sound you hear.  Some will say there are sonic benefits to separating the server and streamer, but there are several high-priced one-box (server and streamer) solutions by companies such as Grimm and Antipodes that likely offer current state-of-the-industry performance.
2. I use a separate server and streamer - two different components.  My sonicTransporter i9 (Gen4) is set up in a separate room along with my modem and router, and the digital output signal is converted to an optical signal, which is connected by a fiber optic cable to a Sonore Signature Rendu SE Deluxe streamer (located in the room with my main system) that either feeds my DAC through a USB cable or, depending on my set-up at the time, feeds a Singxer SU6 DDC via USB, which is then connected to my DAC via S/PDIF coax or AES/EBU XLR.
3. While there are other formats, FLAC files should sound just fine (particularly for standard redbook CDs) and will in most cases equal what you hear by streaming.