Regarding the Squeezebox, it is a newtorked device so your music source doesn't need to be next to your squeezebox, it can be in another room, or state if you're clever.
I run a Thecus N5200 NAS that I've loaded the bulk of my collection on, that sits in one room, and my Squeezbox is in my living room wirelessly networked back and pulls the music from my N5200. It's not a very difficult setup, but depending on your budget might not be the cheapest solution.