Ok so there's nothing more frustrating than when the OP never posts saying what they did in the end thus rendering the original post pointless.
I'm still chruning over all the possible solutions and still change my mind on an almost daily basis.
In the mean time I have been playing with foobar2000 as a means to play music on Windows and after quite a bit of faff have got it worked out and have a nice skin on it, also downloaded the app for Android to control it which works really well and looks good. With than in mind I think I may make do with plugging a netbook (used for XBMC too at the moment, very tempted to build a dedicated machine on an Intel NUC) into my Onkyo tx-sr608 and play music like this in the living room for the time being - this is what I've been doing in my "man's room" up stairs where I have my PC.
I'm tempted to get a little DAC/Headphone amp and some reasonable headphones in the mean time. Having a 7 month old in the house there are limited opportunities to listen to music at a reasonable level without the wife marching in and turning it down 30 seconds in :shame:
I'm thinking along the lines of Arcam rPac, Audio Engine D1, HRT Micro Streamer plus at set of AKG 550's - but I'm going to post that in a different forum!!!
My thinking is that it will give me a portable solution to take wherever I go and that I can tranfer between the living room and the "mans room" upstairs. Also it's something like a £300 outlay and will always be useful even if I go more high end eventually due to the portibility.
It's a shame logitech pulled the squeezebox - it's left a real whole in the market. I'm tempted by the simplicity and ease of use of Sonos, I'm just not convinced it's worth the money and they haven't changed the hardware I'm interested much for years. Plus Bluesound looks like a proper rival to Sonos, if /when it becomes available in the UK and can play "HD music". Not that I have any HD music, the process of ripping my library to Flac is going well but that's all 16bit which sonos can handle fine and my other requirement is Spotify but again that's 320kbps which Sonos can handle fine.
The dedicated seperates are all cheap at the mo, suggesting new models are on the way, plus it seems silly spending money on one to plug into an AV amp.
I also toyed with the idea of just getting a new amp like the highly regarded Yamaha 673 which streams Flac and has Airplay but there's a few reasons's I've decided against that.
Mondays solution was an Arcam rDac with the USB wireless dongle (£250 for both at Richer Sounds at the moment), I thought I could also get an rcube to take around the house too. It's not a bad idea, again I think they may be due a replacements and would cost me a similar amount to the portable solution but not have the flexibility.
Having moved into a new house a year a go there are far more sensible
things to be spending my money on at the moment so instead I'm putting a bit aside hoping that one day I'll be able to go out and buy some really nice kit.
I'll upgrade the speakers first to a traditional setup rather than style speakers, make sure they have good front speakers for stereo music and then treat myself to a stereo amp plus DAC and some sort of streamer or get a one box solution like the Naim UnityQute2, Thats a fair amount of money (at least to me) and a few years away yet!
Anyway if I buy something I'll post to let you all know what I got and if it's any good!!!
Thanks for all the responses!