Squeezebox Duet + inexpensive stand alone server

I have finally added wireless digital to my vinyl/Cd system.
Love it! Dell PC + Duet + Linn 5103 DAC + ipod touch controlling 3 areas.
Have downloaded 100 albums AIFF onto my PC and am now panic stricken in case of hard drive failure.
Would like a stand alone server (cheap pc?) with 1 TB storage and same as back up.
It should be in a separate room and operated by my PC or Controller or ipod Touch.
It can be on 24/7.
Just audio usage.
Thought I was going with a ReadyNAS but read so much about slowness and issues with Squeezebox I'm very hesitant.
Read lots about Atoms and build your own but it just gets so complex so quick and the jargon goes way over my head.
Simple is better and I have $600 burning a whole in my wallet.
Help needed!