Is this a reasonable Audiophile Mac-based Server?

That should work. The only thing that I'm thinking now is that you'll want to have an internet connection available(usually via ethernet) to look up cd info and album artwork when ripping newly purchased cds. Do you have a vga jack on the back of your tv to use as a display?

Got to love the Charlie Brown Christmas tree in your picture!

Synthfreak (and others),
There seems to be many of you who feel that a wireless network just won't give the same level of performance that you can get from real wire.

To explore this option, I've assembled a "Plan B" and put it up on the website. You can view it by clicking here

I remain unconvinced that it will outperform the wireless system in plan A, but I am going to try some A:B comparisons once I get my other components (B&W speakers and Classe Monoblock amps) in a 6 or 7 weeks.

One problem with a wired system is : How can I control it from my listening chair?

Henry, looking at your plan B I still don't think that Toslink will give you the same performance as a USB connection. I had several people over today and we performed some more comparisons in my system:

1) Slimdevices Transporter direct using the internal DAC in the Transporter
2) Transporter feeding Benchmark DAC1 via toslink
3) Mac Mini feeding Benchmark DAC1 via USB

Out of the above 1) and 2) were very similar, despite the different DACs.
Switching to USB made the biggest difference, i.e. 3) was clearly better, less hf noise, tighter more extended bass.

As for remote contrallability: The Macbook as well as the Mac Mini come with a Infrared remote to control iTunes or Frontrow. Alternatively take a look at Salling Clicker, which allows you to use a PDA or cellphone as remote (works great too).

Again, just my own experience, but have been playing with several of the combinations you suggested in my own system.

You should be able to try it both ways to see what works best. I got into this whole thing by trying airport express. It didn't work in my system, but as others have pointed out, that could be the exception rather than the rule.

Try it. If it doesn't work for you, return it to the apple store. Cat5 cable is cheap and easy to test too.

My system ended up being hybrid wireless. Ethernet connections from network drive to router to music server (sonos) then to dac. Wireless laptop controls playback. Simple and reliable.

Just stick a SB3, sonos, transporter or mac mini next to your dac and you'll have great sound that you can control from your listening chair wirelessly with your laptop.

Don't do anything that takes the laptop away from your lap or binds it with wires when it is there. There is a simple way around it.