Generation 1 Apple TV as a music server


I'm looking for a music server to add to my hi-fi system. Have previously considered the Mac mini(base model), but my budget cannot reach to that level.

As an alternative I'm considering the Apple TV gen 1, as I want to sync all my iTunes music files(AIFF) to its hard-drive, and use that as a hi-fi front end.

Any advice on this choice, or others would be appreciated.
soundmark1
Does the Apple TV gen 1 have the "normal" size Toslink output port, or is it the mini-toslink port? Cheers in advanced.
The ATV 1 has a normal sized toslink (non-mini) output. USB won't output anything. Won't input anything either, unless you hack it.

The ATV 1 has analog, toslink, and HMDI outputs.

I don't own the ATV 2, so no comments from me.
can i stream music WIRELESSLY from my ipad or iphone?

Will this setup work? [Streaming music from ipad via wifi --> ATV 1gen --> DAC --> AMP]?
Many thanks to all replies; my latest purchases: an Apple TV gen 1; DACMagic Plus DAC from Cambridge Audio. And just recently purchased the Supernova 5 glass optical cable from WireWorld, replacing the Audioquest Optilink 3 fibre Toslink cable: major improvement there.

Very pleased with the sound now. As mentioned above, the optical glass cable was a big improvement.

Found out that the USB in the ATV is just for "servicing" - connecting printers, etc.

But very happy using the Toslink connection from the ATV to the DAC.
Have now upgraded to the Wireworld Supernova 6 glass optical cable - even better than the Supernova 5.