my 2p.
I use Squeezebox but have a dedicated server installed on an Intel Atom micro ATX – so it’s about 25cm x 25 cm, with a laptop 1Tb drive in it, very good on power and Squeezecentre has a plug-in to shut the server down and wake it up when required or not in use. Much better performance than running on a NAS plus you can upgrade it whenever required.
Then install http://vortexbox.org/ this installs Squeezecentre, plus a load of other stuff, lets you rip disks direct from the server, music or DVD’s to FLAC mp3 or whatever. This is all free Linux based.
It’s literally a case of putting the cd in and away you go.
Vortexbox really was the missing link in my previous Squeezebox setup.