I have to second Ckorody on this one. I believe the Squeezebox modified would be the best bet. You cannot believe the difference it makes putting some quality parts inside that thing. Also it allows flexiblity in terms of storage and backing up. My friend already has two 250g harddrives full which already alot more that the music server mentioned. The Squeezebox can be a made to sound quite a bit better than your arcam player if you just get it modified and change the power supply from a switching to linear. Getting the analog mod from either bolder or redwine will cost you around 300 dollars... a decent dac will cost atleast 500 and up. Give the Squeeze a chance pal.
Peace
Peace