How to introduce computer audio to my system?

I have an EMM XDS1 and (too many) CDs (mostly redbook).
What is the best way to start storing/organizing CDs on a server and play them back using the DAC inputs on my EMM? Thanks.
Today I would consider a sonos (.com) connect digital out to your DAC and try a subscription to MOG (16M 320kbs song library) while you rip your own collection. That would give you immediate access to music plus Internet radio. I just replaced my bedroom system with sonos wireless speakers and am really enjoying the ease of set up/use and immediate access to music using my iPhone as a remote.
No matter what you do, you will have to rip your CD collection. If the server has a drive you can do it on the server. I personally have music server behind my main audio rack, so I cannot use it for ripping.

The Bryston BDP-2 supports NAS storage. So you would rip your CDs on any el cheapo PC on the network (using a good ripper like Exact Audio Copy), and store your data on a NAS. A NAS can be configured for RAID 1 as suggested by lupinthe3rd. You set up the Bryston to look for music files on the NAS and presto. Not sure how well this would work if you have no ethernet connection close to the BDP-2. You can probably get this to work wirelessly. Another option is indeed to use USB storage.

There are many ways to skin the computer audio cat, and it may indeed be a little confusing to the novice...
I use a single HDD (no RAID) for my main music library but use a RAID 6 NAS to back up the files.

ps even RAID is not infallible especially for most SOHO systems so if you are really being pedantic, you will need replication as well.
The problem with RAID is if you get hit by a power surge both drives in the enclosure will be wiped out. The safest backup strategy is to have one backup drive physically disconnected from power. Of course, better still is to have a backup drive in different physical location.
Great question/answers! I run sonos feeding a wyred4sound dac2 listening to mog. It's okay but honestly not great. Looking to hook up my mini mac using high res files and was suprised to hear mog streams that high a rate. Maybe I won't be hooking up a mac mini after all, lol