Ozzy,
The short answer is yes, assumming the 1 TB drive is either USB or Firewire, and you ripped to a popular music format.
The Mach2 will work with USB or Firewire drives. We recommend that you keep the drive and DAC on seperate interfaces (1 on USB, the other on Firewire).
We setup iTunes and Play which play most of the popular formats, so you shouldn't have to re-rip your music.
Darrell
www.mach2music.com