Yeah, buying the bigger hard drive from Apple is like buying floor mats for your new car from the dealer.
160 Gb isn't a big enough drive to use as a music server, anyway. A better plan would be to buy the basic Mac Mini for $600 and keep only the operating system, iTunes and any utilities on its internal drive.
Then buy identical big external hard drives, maybe 500 Gb each. You can get those for not much over $100 each. Put your music library on one and make a mirror backup of it on the other. You don't want to have to rip all those CD's again if a drive fails.
You shouldn't need more than the standard 1 Gb of RAM if you're not using the Mini for anything other than a server. The service plan is like all extended warranties, nice to have but very expensive insurance.
160 Gb isn't a big enough drive to use as a music server, anyway. A better plan would be to buy the basic Mac Mini for $600 and keep only the operating system, iTunes and any utilities on its internal drive.
Then buy identical big external hard drives, maybe 500 Gb each. You can get those for not much over $100 each. Put your music library on one and make a mirror backup of it on the other. You don't want to have to rip all those CD's again if a drive fails.
You shouldn't need more than the standard 1 Gb of RAM if you're not using the Mini for anything other than a server. The service plan is like all extended warranties, nice to have but very expensive insurance.