Mini Mac as audio server?


OK, I've existed in blissful ignorance of the OSX world, being a Windows dude. But, this little miniMac thing might change my world. Small enuf to stick next to the stereo... Cheap enuf too... With DVI and DVD, probably eliminates my DVD player as well. Check it out:

http://store.apple.com/1-800-MY-APPLE/WebObjects/AppleStore/

Sooo, someone wanna educate a non-OSX user on audio via Macs? Right now I'm 70% through ripping over 1K CDs to WAV files. I'm thinking the files will eventually end up on one of the Buffalo Terabyte NAS RAID 5 devices when they become available next month. So... the questions...

- Can I play the WAV files via iTunes?
- Is iTunes smart enuf to recognize that I've dropped the files into /Artist/Album directory format and create tags?
- Anyone using an Edirol UA-1D via USB out of the Mac? Any compatibility issues?
- Anything better to do PCM output from the Mac than the Edirol?
- If I watch a DVD, and output the video to my plasma via the DVI port, will the Apple media software recognize that I want PCM output, not multichannel?

Any help appreciated.
edesilva
Actually, its Eric...

My house if far less color coded w.r.t. ethernet cables, I got gray, blue, yellow, white, green, orange, red...

I never thought, as joe-average-consumer, that I'd be acting as the IT department for a home network that involves three desktop PCs, one mini Mac, one tablet PC, two laptops, one Xbox, one PS2, one NAS, four routers, two serial port servers, one USB server, one 802.11 AP, three audiotrons, and one CD30. I have IP address conflicts in my friggin' house.
Gunbei, most big companies buy ethernet cabling in bulk, slice off what they need where they need it. Belkin sells a rainbow of choices. Happy happy CAT 5.

Edesilva, regarding Apple Lossless I'm mostly interested in playback, AL vs. WAV. Does decoding AL dirty it up somehow. Don't know what I'm looking for or how that comparison would be made. But if I'm going to move to a Mac for playback, I only want to make that move once.

I've been looking at the Apogee MiniDAC as well. Seems like the Waveterminal would sure open up the options. You're happy with it? (And where'd you find it for $150?)
I just saw this on Apple's site. Might be nice for some of you guys.

http://store.apple.com/1-800-MY-APPLE/WebObjects/AppleStore?productLearnMore=TB638LL/A