Wireless Slim Devices Squeezebox performance

Yes, it does that as well as stream internet radio as well.

That's exactly how we have ours set up. The external hard drive is down the hall from the listening room. The Squeezebox is connected to our DAC, and we can adjust the volume or select songs with either the Squeezebox remote, or on the computer down the hall. There are two versions of the Squeezebox, so just be sure and get the one that is capable of going wireless.

Be sure to get a linear, and use toslink, or else your system will become "noisy".

Be sure to get a linear, and use toslink

I have no idea what you mean by the first part of this sentence, but having recently reviewed this unit, I found the coaxial to be superior to the optical.

Kennyt,
In ideal conditions, I do perfer AES, and SpIDF over optical.
This is not the case with the SB3.
The wall wart power supply, tosses huge amount of noise in theAc curcuit that feed your entire system, which in turn can have serious negative impact on system performance. This is why I mentioned to use a Linear power supply. I say Toslink, because to prevent a conductive niose issue. Since the SB3 does not have a common ground that can help reduce the HF niose, Toslink will prevent the niose from contaminating your whole system. Users have found disconnectiont the SB3 from power and from thier system, totally, yields much better performance, while playing another source, such as optical disc extraction. please note, this is dependent on how revealing a person system is, and other factors, such as our hearing.