What do I need to set up digital music server?

For your budget I would recommend the following:

1) Oct 2009 Mac Mini with Snow Leopard disk, keyboard and mouse - upgrade with SSD and increase DRAM to 8gigs - total outlay $600 - buy it on ebay for details see:

http://www.empiricalaudio.com/computer-audio/recommended-systems

2) Amarra, Pure Music or Audirvana software - ~$74-300

3) upgrade power supply for the Mini from paulhynesdesign.com or equivalent - $800-900

4) good USB cable to go to a USB DAC or USB converter - $450

You do not rip CD's with your CD player. You rip them using XLD on the Mac Mini. IT has a slot drive. XLD is freeware.

This will beat 99% of servers out there, including Linn and Naim. You would have to spend at least $5K on a all-in-one server to beat this.

You never said whether you need digital source or analog source. If you are currently using your CD player left and right analog outs, then you will need a DAC. If you are using your CD as a digital transport, then you will need a USB to Coax digital converter. (USB converter) Big difference in cost.

The thing to understand is that the digital master clock is the most important thing in any digital system. This clock currently resides in your CD player, but must be located elsewhere for a computer audio system. The best place to locate it is in a USB converter, where you can have independent high-quality power supply. The USB converter can drive digital to your DAC, SS processor or Home theater receiver.

Steve N.
Empirical Audio

zd542 - Based on feedbacks from many customers and personal experience I have found that there are only a couple of really good neutral sounding USB cables. Unfortunately some of the best ones came from a designer that is not with us anymore, Lee Wieland. My customers tell me that the best cable is now the Revelation Dual-Conduit which is all silver and spendy.

Using Async USB, the theory says that the USB cable should not matter, but due to other factors such as RFI and common-mode noise, it still does.

Steve N.
Empirical Audio

"Sonos has a neat little unit that has a remote with a screen. I like the idea but I don't think the Sonos will handle HD files. Logitech also has the Sqeezebox Touch, but again not sure of the sound quality. Any opinions on these two products?"

Sonos only supports up to 48kHz. Logitech Touch is much better stock and supports up to 96. Both can be improved to world-class performance levels by adding the Synchro-Mesh reclocker in-line, particularly if upgraded to use the Dynamo power supply. It does not matter which one you choose once you have the Synchro-Mesh. You can even use an iPod dock like the Pure i20 ($85 on Amazon).

Steve N.
Empirical Audio

"I don't have any HD files like that yet, but I would like to move in that direction. I'm stuck with iTunes compatibility"

You can still use iTunes as long as its on a Mac. Just combine with Amarra or Audirvana and you will have a great sounding player. Use XLD to rip to .wav for best results.

For PC, avoid iTunes at all cost for music playback. Get Jriver instead and maybe improve it by adding JPLAY. Rip CDs with dbpoweramp to .wav format for best results.

The MOST IMOPORTANT thing with digital audio is to minimize jitter from the digital source. The best way to do this is to reclock the datastream or use a good quality stand-alone Async USB converter like the Off-Ramp 5.

More tips:

http://www.empiricalaudio.com/computer-audio/

http://www.empiricalaudio.com/computer-audio/recommended-systems

Steve N.
Empirical Audio

BTW, I have a Sonos color LCD remote that I can sell you cheap. I don't use the remote anymore.

Steve N.
Empirical Audio

"Audioengr, If one buys a real good, high quality player/server will one still need the reclocker? "

I'm afraid so, if you want it to be as good or better than your CD transport.

"Where is the reclocker located in the system?"

If you are using USB, then its a USB converter like the Off-Ramp 5, located between the computer USB output and the DAC coax input.

If you are using Sonos, Squeezebox, Apple TV or a digital docking station, then its a reclocker like the Synchro-Mesh, located between this source device coax output and the DAC coax input.

Steve N.
Empirical Audio

Yes. Unless you have a megabuck transport, the Synchro-Mesh reclocker will improve things. Particularly if you use the Dynamo power supply and my BNC cable.

Steve N.
Empirical Audio