"The problem I have is that the squeeze box doesn't sound as nice as the Arcam, and the laptop hard drive is nearly full (all my files are lossless)."
I'm not surprised that the SB doesn't sound as good as your Arcam.
If you have to buy a Mac mini(Macs have high jitter on the optical output), a DAC, modify your SB or get a USB converter to play off a hard drive, why not look at a Cambridge Azur640 music server?
http://www.cambridgeaudio.com/summary.php?PID=39&Title=Azur%20640H%20Music%20Server%20-%20with%20AudioFile%20technology
It can live in your listening room, and replace your current CDP. It's got a much better power supply and bigger HD than the Mini, is expandable and can be networked to your PC or other music servers.
I'm not surprised that the SB doesn't sound as good as your Arcam.
If you have to buy a Mac mini(Macs have high jitter on the optical output), a DAC, modify your SB or get a USB converter to play off a hard drive, why not look at a Cambridge Azur640 music server?
http://www.cambridgeaudio.com/summary.php?PID=39&Title=Azur%20640H%20Music%20Server%20-%20with%20AudioFile%20technology
It can live in your listening room, and replace your current CDP. It's got a much better power supply and bigger HD than the Mini, is expandable and can be networked to your PC or other music servers.