Slim Devices for me too
Yev,
I've been researching the same question for the past month or so, and have decided to go with the Squeezebox as well. It does not do pictures at this point, but for music it seems to be the best option out there. It can be connected via wire or wireless and handles lots of formats. It also provides for both digital and analog connections to whatever device you are outputting to. It does not handle DRM protected Windows Media files, though, so be careful if that is an issue for you. I'm planning to connect my DSL service to a Wireless Firewall router, and put a dedicated music server behind it. Then put a wireless squeezebox in the living room and one in the pool room to connect back to the server. One cool thing is that those seperate boxes can be run entirely seperately or synchronized to play the same tunes in both rooms from one remote.
Good Luck,
Mike