Rob wrote:
For that money or a little (lot for a Mac!) more I'd go for a media Mac
or PC, an iPod Touch, and connect it all to a TV and hifi.


Agreed. Go for an Acer Revo.

Acer Aspire Revo R3600 Desktop PC, Atom 230 1.6GHz, 160GB HDD, 1 GB RAM,
HDMI, nVidia GeForce 9400 ION, WIFI, Linux

http://www.ebuyer.com/product/167153 - £144.85 inc VAT

This is a pretty cheap & small PC that can be run in server mode
consuming very low power. It's small, and has got plenty of toys for
multimedia use.

A USB audio interface to handle phono connections
http://www.behringer.com/EN/Products/UFO202.aspx

For a wireless controller, use an iPod touch or something I'm currently
studying the potential of as a bedside clock - a Chumby One

http://www.chumby.com

--
Adrian C