Thanks again to all of you for the help. Ckorody, you've been indispensable in so generously responding to my questions both here and privately.
I put iTunes on the computer in our upstairs bedroom so I could avoid having the unwanted computer noise in the listening room. I put a 300GB hard drive on the same system, and the Squeezebox sits in the listening room. The wireless arrangement between the two works perfectly. We have about 400+ CD's loaded onto the hard drive, and even with the SB DAC the sound is decent. Tomorrow, however, we will be picking up our CDP, which is having a digital input installed, and we'll run a digital cable between the SB and our DAC, which sounds dramatically better than that of the SB...as it should, considering the price difference.
Nothing like having the convenience of the hard drive. We end up listening to CD's that might not otherwise find themselves into the rotation. This is a lot of fun, and my wife is thrilled at the ease of using this setup.
Thank you all again.
Howard
P.S.--It should be noted that if you are using the SB with a PC, you can rip to an external hard drive VIA iTunes, using the iTunes editing software, etc., but as far as I understand, you can NOT 'drive' from iTunes. In other words, you must use the SB remote OR Slim Server in order to control the playback, not iTunes. If anyone knows differently, please say so.