I use several methods to store and "stream" music throughout the house.
For storage I have a Sony 400 disk SACD/DVD player and an HP Home Server (MS Home Server software) with 3TB storage. I also use the server for back-ups and television capture storage.

For distribution I use a cat5 based system (A-Bus) that allows 4 sources to be streamed to up to 8 locations. There is a lot of wiring involved in this method but it is quite dependable.

For Source material I rely on the SACD player, television (digital music channels), receiver and XBox360.

I also subscribe to Rhapsody so I have an almost unlimited selection of music that is perfectly acceptable quality at ambient (background, if you wish) listening levels. This is stored on the server as well and the XBox (with Media Center) handles the DRM without overloading the internet connection.

I don't know if this helps your situation, but it has yet to fail me. Besides, with 3TB, music storage is but a blip on overall load.