John Atkinson's "Music Served: Extracting Music from Your PC" is a must-read; start there. While you don't need the latest or most powerful computer to use as a server, you do, as JA observed, want a quiet one. My iBook did yeoman duty in this regard—from my listening position, I was never aware of its fan even turning on.
In future, however, I believe I'll take JA's suggestion to use a Mac mini; I discovered how much better my iBook sounds when I maxed out its RAM at 2GB. I can jam 6GB into the…