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?
djh
The more I read the more I believe it would be best to just get the cheapest used mac mini I can find and dedicate it to my music. I can't do all the upgrades on the G3 myself so I'm sure the cost won't be justified. The problem is that I have no other use for the G3 and I hoped I could cheaply put it to work for this one job (and save money for a good dac). Perhaps someone else with expertise will take it off my hands.

Thanks for the ideas.
The Apple store online has refurbished Mac Minis with the same warranty as new ones for $499 at this moment. Scroll down the page.

The number available is usually very limited but different models do come up every few days
Yes, that is how I purchased my new 24" imac. A great deal. I really didn't want to spend $500 (plus 1 or 2 externals for loading and backing up) for serving my music. But, the more I think this through the more it appealing it sounds for the long run.