Is this a reasonable Audiophile Mac-based Server?

Henry,
It is a 'reasonable' music server. the 'audiophile' designation is up to you.

It is very similar to
my mac based system (DIAGRAM of LAYOUT) My system is based on equipment I already had as well (except the external DAC) Though I would have to agree with Ckorody about the airport express drop outs. Initially I used an AE connected to my receiver and found it dropped out occasionally ( about once every 3 days). I have since hardwired the connection using Toslink from the office to the living room about a 8 foot cable run. I still use AEs in my garage and bedroom. In either case (wireless or cabled) a DAC is a noticeable improvement.

To put my comments in context--doubt if I can link to my system over on another site-- here is a cut and paste ( a basic audio system )

Digital Source Digital Audio: Apple Power Mac G5 (see below)
Signal Processors Monarchy NM 24 DAC
Receiver Denon AVR 4306
Speakers Tetra 120u
Subwoofer Martin Logan Abyss
Speaker Cables Anti-Cable
Interconnects Ven haus cryo pulsar silver /Audio Art Cable IC-3/ Monoprice digital
Power Conditioning Belkin Pure AV
Other Components Music Server PC: Apple Power Mac G5 Dual 2.3 PPC / LaCie 500GB Big Disk Extreme | Music Server connected to Denon AVR via TOSlink Optical | Apple Airport Extreme/Express network to remote powered speakers in other rooms

the above system also part of an AV system

I found that there is a disadvantage to running iTunes from a laptop as a source to a system: when it goes to sleep(or one closes the lid) the music will stop. I really like the NetTunes application, a sort of VNC into your main server, it provides virtual control of the itunes on the main server. there is a slight graphics lag on the laptop side but acceptable to me. when you close the laptop the music still plays. I also use my ipod for basic FF/RW and pause remote control....that is with Signal Remote.

good luck
ed

Just to add on to Edo who has certainly put together a nice rig -

Running out of a G5 is a nice way to go. Before I moved to USB, I ran the Wireworld SuperNova Toslink from my G5 to my TriVista and it was very very good. Fine solution to 15 feet. No cables longer then that.

There is no "but" except that you really need to pay attention to the quality of the cable. Also be aware that not all Toslink implementations are created equal. So YMMV depending on the DAC.

However you may not need or want a G5 (full size tower) for your listening environment. It works for me because the rig is also my office - I just put up with the low level noise. If you are using a tower, one thing I would recommend is to take advantage of the SATA drive implementation rather then the LaCie USB/FireWire implementation. SATA is much more robust to live with (no FIFO/LIFO nonsense) and doing back-ups between SATA drives (which is essential to plan for) is much faster. Besides again in the office context it makes sense for me,

A lot of guys are doing Mac Mini implementations which seems like a very nice way to go if it works in your room. Both the iPod Touch and the iPhone can control it remotely. Front Row is free etc.

I tried a different approach that probably isn't popular but works in my application. MacPro with Apple Lossless files transfered to 160 GB Apple TV with Toslink connection to Theta Casablanca III with Extreme DACs. Remarkably close to CD's digitally into Theta. Uses Apple TV's interface with I don't mind. Music stored on Apple TV HD rather than streamed actively on wireless. Needs HD monitor.

Apple has just announced some upgrades to the Apple TV along with a price drop. Assuming you have your rig in a room with your HDTV this is an elegant solution.

I'm still a little confused why everyone insists on going wireless instead of getting a Mac Mini, a dac & a huge hard drive that can interface directly to your system. Throw a wireless keyboard/mouse or an Apple Remote under your sofa and you're done.