Where to start?
To be frank your budget dictates heavily what to buy.
In terms of sound quality the squeezebox should marry happily with your surround sound system.
I have a squeezebox duet and I really love it, but if you are planning to run it from a nas drive it can be a bit of work setting up, if you stream from a pc then it is pretty straightforward. That said there is a newer version coming called the touch which is apparently far better in this regards, does not need a computer to run it and can stream from any usb attached hard drive storage and from the specs seems to be the one to choose. It is released in december.
I stream wirelessly via a bog standard BT router and this has proved 100% reliable for the past year or more. If you have a wireless router you probbaly will find it fine.
The key is how to rip your cd's, what programs to use, what format, etc.
I would advise going to the squeezebox forum (forums.slimdevices.com/) and asking their advice.
Be prepared for some reading....
For reference I ripped everything to flac for archiving but in practice I can hear no difference between flac and 256kbs mp3. I use a freeware called ripstation micro as it is idiot proof and reliable.
Hope this helps, Ant