Mini Mac as audio server?


OK, I've existed in blissful ignorance of the OSX world, being a Windows dude. But, this little miniMac thing might change my world. Small enuf to stick next to the stereo... Cheap enuf too... With DVI and DVD, probably eliminates my DVD player as well. Check it out:

http://store.apple.com/1-800-MY-APPLE/WebObjects/AppleStore/

Sooo, someone wanna educate a non-OSX user on audio via Macs? Right now I'm 70% through ripping over 1K CDs to WAV files. I'm thinking the files will eventually end up on one of the Buffalo Terabyte NAS RAID 5 devices when they become available next month. So... the questions...

- Can I play the WAV files via iTunes?
- Is iTunes smart enuf to recognize that I've dropped the files into /Artist/Album directory format and create tags?
- Anyone using an Edirol UA-1D via USB out of the Mac? Any compatibility issues?
- Anything better to do PCM output from the Mac than the Edirol?
- If I watch a DVD, and output the video to my plasma via the DVI port, will the Apple media software recognize that I want PCM output, not multichannel?

Any help appreciated.
edesilva
The Grace unit is leagues beyond the performance of the Edirol and has coax and AES/EBU interfaces as well as analogue outs. I am not sure if it will accept a USB input but that s/b easy enough to find out. Of course, it is a tad more expensive than the Edirol.
After doing some further research, I think I'm actually going to use one of the Waveterminal U24s. I'm curious though, since the Edirol is just a USB audio device (i.e., routes audio out to USB and converts to PCM), how can you say the Grace is better if you don't know whether it has a USB? Better at what? What is the Grace?
The best output from a computer that I have heard has been the lynx 2 soundcard, comes with eight channels, 4in 4out, 2in 6out, 6in 2out depending on the model. Any computer with itunes and a lynx and youv'e got a world beater.
I think with the miniMac, you are limited to firewire or USB audio out, since it doesn't seem to permit installation of cards...
Definitely no room for a PCI card in the mini, or in any other recent Mac besides a tower. Firewire and USB are the only way out. I have a Tascam US-122 (USB) that I use for a little home recording. Works fine for recording demos and messing around, and playback certainly sounds better than plugging into the headphone jack. But A/B it against a mid-line Arcam and the Tascam wasn't even close.

I'm considering the Apogee USB MiniDAC, which is a big step up in price at about $1k. It has features I just wouldn't use, but if the sound quality's really up to snuff, I'd pay it. Anyone have a chance to demo this, or any other USB DACs? I'd love to turn my Mac into a media server.