Glad to hear you wrung some improvements out of the system. I'd be curious to hear the results of using the Squeezebox. I used to have a host of Audiotrons around my house run off my hardwired ethernet. I liked the search capabilities and the fact that the Audiotrons were autonomous and didn't require any software running on a server--each Audiotron indexes all available music files in public directories, maintains its own catalog, and pulls files down as needed. I gather the Slim devices require some server to "push" the data out to the Squeezebox.
The reasons the Audiotrons have fallen into disuse in my house are:
(i) Whenever there is a brownout or some kind of network fault, they have to reindex the songs, which can take a good 15 minutes with a large collection. Since the audiotrons were in areas I didn't use everyday, it seemed like they were reindexing every time I wanted to use them.
(ii) The indexing works great with mp3s, but tag implementation for .wav files is spotty and the only way of putting "tags" on your .wav files uses is manually using some audiostation software that isn't--in my book--reliable with large libraries. The tagging is also nonstandard, so the effort is audiotron specific. Ugh. While the Audiotron supports some other lossless compression schemes, I function in a mixed windows/OSx environment, and have to deal with the lowest common denominator between iTunes and Windows media players--right now that seems to be .wav.
Anyway, good luck with the Squeezebox. I think the SB won't suffer from (i), but I'd be curious what your experience with the software is related to (ii).