Squeezebox is the framework of my home music server.http://www.logitechsqueezebox.com/
I have an energy efficient Atom-based desktop in a closet upstairs, hardwired by Ethernet to my home network via my router. Connected to it is a single "green" 2TB external hard drive with about 1.8 TB of FLAC and MP3 files (72,000+). The Squeezebox software is installed which indexes and streams the music. Squeezebox will also serve up any internet radio stream including Live365, Pandora, last.fm, BBC, NPR, etc.
On the player side of things, I have a Boom by my bed, a Radio by the guest bed, a Duet in the living room attached to the main stereo, and another Boom in my office. Each player is connected to my home wi-fi network and each has a remote control (even the Radio can be controlled by the Duet remote control). In fact the entire system can be controlled from the Duet's remote control from anywhere in the house. I have mentioned before that a home music server has revolutionized the experience of music for me, releasing me from having to change CDs, and allowing me to have music on at all times. This last aspect is hard to appreciate until it happens: it's incredible.
Squeezebox is just about to release the Touch which will have a bright touchscreen and a higher fidelity chip, likely it will replace the Duet's receiver.http://www.amazon.com/Logitech-930-000074-Squeezebox-Touch/dp/B002LARRDA/ref=sr_1_1?ie=UTF8&s=electronics&qid=1260621535&sr=8-1
Each Squeezebox player can play something different or you can sync them up. You can also control the whole shebang from any computer that connects to your home wireless or wired network.
Sonos has a similar system that is very sleek and a bit easier to set up but it's about twice as expensive and limited to 65,000 files unless you install Windows Home Server. If you like the Mac aesthetic, you will like Sonos.http://www.sonos.com/
Other major players are getting into the home music server game, but Squeezebox and Sonos are more developed at this point.http://www.hometheatermag.com/convergence/multiroom_magic_with_sonos/
The other options are mentioned at the end of this article.
I hope you guys have a musical and wonderful holiday.