Help -- need Idiot's Guide to music server system


Squeezebox, FLAC, Mac Mini, lossy, lossless -- help, what does all this mean? I'm trying to find out more about taking a CD collection onto hard drive music server. Can anyone recommend a Beginner's Guide, whether online or in print? I'm not completely computer illiterate but I can't figure out the basic hardware needed. My main interest is not to broadcast music wirelessly to different rooms but to get a thousand-plus CDs into some more convenient and secure data storage system without loss of CD audio quality -- can it be done, and with what? If you can point me to an Idiot's Guide, I'd appreciate it.

If it matters, my current system (set up in a small listening room) is a Naim Nait 5i amp and Naim CD5i-2 player driving a pair of Spendor S3/5s. The rest of the room is filled with CDs. Thanks.
jhold
go to PS Audio website and read article in monthly magazine which tells you what to buy and how to set it up...you're rolling for about $2K plus your own hi fi.
Larry
Jhold - I have new MacMini with OSX on it and 500GB Firewire drive "Neptun" from OWC (pretty quiet) for computer backup. I'm planning (in future) to create music server using another Firewire drive. With the current capacity of CD you could probably store 1500 CDs in Apple lossless format and it's only about $100. When you need to expand you can daisy chain another Firewire Neptun. Backup of the music server comes to mind since you spend a lot of time to rip and compress disks and don't want to loose it. When it comes to that point "Neptun" will be even cheaper and you can daisychain many. Keep backup in different house (Theft, Fire etc).

Connect MacMini's optical out using Tosslink (possibly glass one) to the DAC. I use jitter rejecting Benchmark DAC1 that cost around $1k. Get newer USB version ($300 more) just in-case. Benchmark has volume control - I use only digital (CD, DVD, TV) and connect XLR outputs of the Dac to Power amp directly.
I,m also a computer idiot. I've been looking into Olive Opus 4. My question is I have an Audio Aero cd player, how much $$ to get the same quality of play back. I ask about the olive because it looks the simplest soulition.Another question is cost of cables.
I might be a retard, but it seems to me that none of this stuff could possibly sound any good. Get me back to my vinyl, quick.
I put together a computer with some old parts laying around, got it up and running and ripped a couple cd's in wav lessloss, run it out of the coax to a pre/pro. God what a horrid sound. My $.02 if your thinking about this route.