I am using a powermac g4 for this purpose and it works great.
Suggest this site
http://eshop.macsales.com/MyOWC/Models.cfm?TI=4033
for possible upgrades for your G3 Mac. I am not associated in any way with OWC.
I suggest upgrading the hard drive controller using a PCI to SATA card and install a 1TB drive. That way you do not have more wires for an external drive. If you want to install Leopard upgrade the processor. Leopard has a great feature called screen sharing which will allow you to run the G3 'headless' by remoting in from another PC/MAC in the house. You would use this to control itunes for example from a remote site.
USB/Firewire sound out to an external DAC - Apogee, Benchmark - would give excellent CD sound quality.
Suggest this site
http://eshop.macsales.com/MyOWC/Models.cfm?TI=4033
for possible upgrades for your G3 Mac. I am not associated in any way with OWC.
I suggest upgrading the hard drive controller using a PCI to SATA card and install a 1TB drive. That way you do not have more wires for an external drive. If you want to install Leopard upgrade the processor. Leopard has a great feature called screen sharing which will allow you to run the G3 'headless' by remoting in from another PC/MAC in the house. You would use this to control itunes for example from a remote site.
USB/Firewire sound out to an external DAC - Apogee, Benchmark - would give excellent CD sound quality.