Get the fastest and most RAM (4 Gigs would be nice) you can afford. Get a NAS (Network Access Server) that is Mac compatible (Buffalo Link Station is what I use and recommend). The NAS will hook up to your router. Hardwiring your mini to your router via Ethernet cable is the easiest and most desirable, but if you can't, there are wireless solutions to connect the two. Buy another USB back up drive of the appropriate drive size to back up your NAS. I also recommend plugging the NAS and back up into a Battery powered UPS. Go to www.USBDACS.com to look at how to configure ITunes. The only tricky part is to learn how to point your Mini at the NAS which will be the location for your music files. When ripping and saving music you will want those files to automatically be saved on the NAS and not youÂre Mini. You will also need to configure your Mini to read the files off your NAS for playback. Nothing too complicated, just something you need to be aware of and monitor.
You will need a monitor or another computer to do the initial configuring and ripping but for just controlling playback, I highly recommend using an Iphone or I touch to use as a remote control.
The benefit of the NAS as opposed to just a regular external hard drive is that you can hook up numerous computers to the NAS via the router.
Each CD is about 30 to 40 MB- so do the math to figure how big of NAS and back up drive you need.
Regarding a DAC- Would need more info. on your budget.