Hello all, this decision has been like peeling back layers of an onion.
On the surface, just about anyone can benefit from the flexibility, convenience and "good" sound of computer audio by simply downloading a player, burning their CDs using their existing computer equipment (Mac or Windows) and running their existing laptop or computer through a reasonably priced DAC.
If your goals are to have a bit higher quality, using dedicated audio hardware, it seems a music server is the way to go. Apparently sound quality approaching all but the best CD players can be achieved using hardware like a reasonably priced Mac mini or a dedicated desktop (or even a dedicated laptop) with external storage.
If your system is already very good, it seems the first two levels may not be the end game. In this case, a higher quality Mac mini with SSD and at least 8GB RAM must be considered or a higher level Windows based server such as one of the CAPS models. A suitable Mac mini with USB super drive can be had for about $1,200 and the already constructed CAPS servers I have looked at seem to be about $1,500 for a similar level of performance, including 256GB SSD and Audio Class 2.0 drivers. The CAPS v.3 Carbon offers the benefit of having no fan but the mini would come with more memory 8GB vs. 4GB in the Carbon. I have not yet read any comparisons between the i7 quad processor in the Mac and the processor used in the CAPS Carbon. External storage would add anywhere from about $500 to $1K with either of these options.
I strongly suspect I will need at least this third level to achieve the sound I have from my system now. Therefore, it appears at a minimum I need to plan on $1.5K plus the costs of external storage and a DAC (probably around $3K total) just to jump in at a level where I will be satisfied.
Going forward, there seems to be another whole level to the servers that I cannot find too much information about. On the Mac side, folks like Mojo Audio and Core Audio Technology will provide anything from kit power supply upgrades to whole unit upgrades for prices ranging from about $900 to around $2K. Either Core Audio or Mojo will sell you the whole deal for the ballpark of $3K. On the Windows side, options include the top CAPS v.3 Zuma (about $2,200 with 8GB and 256GB SSD) and/or the addition of the Red Wine Audio Black Lightning power supply (about $1,200 with two battery packs), which can be added to either the Carbon or Zuma. Therefore, to achieve this higher level, I would be investing in the ballpark of $3K, or north, plus the cost of the DAC, plus the cost of external storage, regardless of whether I choose Mac or Windows.
I may be over thinking this, but it is something I prefer to plan once and execute, rather than going the "small steps trial and error" method I used to assemble my system.