Power PC G3 as music source?

Is it possible to use an old blue and white G3 (running at 400MHz) as a music server? What minimal ram would be required? It seems to run ok with aac files but I'd like to slap an external hard drive on it and whistle the apple lossless tunes wirelessly upstairs to the main rig (either using a sqeezebox device or a separate dac). Anyone have experience using these old macs this way?