I have read all the posts with interests. I spent two years auditioning all the streaming options, eventually deciding to "Sonos" the whole house. I made sure that i heard the Naimuniti, Linn, Arcam Neo and others before deciding. The downside for me on the Squeezebox set up was its set up (I needed to consider ease of use with the family), the sound quality is great on the Squeezebox. I sold all my separates and went for Sonos because of the user experience, the quality of the P5/3, their customer service, it works with most NAS boxes as well as its ability to work on its own network for bandwidth reasons (my son is an online gamer and we download to Sky anytime+/BBC Iplayer etc). Please think about the bandwidth use in your house before deciding on your streaming solution?
My family love the system and we listen to much more music than ever before. It just works and listening to music/radio all over the house is great. Please give some thought to how the family will use your streaming choice?
I use a ZP90 into a Linn Classik with KEF speakers. Yes the sound quality can be improved by adding a DAC, I have tried this and can hear the difference and may consider this in the near future, but I don't think essential when put against the way everybody enjoys music these days.
On the server side, I did take the plunge and bought a new NAS, based around Vortex software, because it can be specifically set up for Sonos/squeezebox and is really easy to use. I went for 2TB because I have 2,500+ CDs and rip in FLAC format. Yes it costs extra, but I needed to ensure that my wife/son could purchase a cd, put it in the slot, auto rip the cd and within few minutes it was available. So the investment to me was worth it. Please talk to LIV Technology Concepts as they know their stuff and preconfigured my NAS to work out of the box, literally plug in and play.
On the question of 24bit and Sonos, please go to the Sonos Forums for a read. Sonos uses 24 bit word length, but 16 bits are for audio and 8 bits are for volume/controller info. So it can't be done as things stand on a Sonos, unless you loose the volume control info and have a fixed volume. The 24 bit question is not important for me, because I can't hear the difference unless it is in a really high end system. If it is that important to you then avoid Sonos, although I hear that there are developments a foot for 2012 if you are prepared to wait.
My wife nearly had me buying a Linn Sneaky when we went for a demo, as we both thought it sounded great as well, by the way. However, there isn't a lot available in 24 bit at the moment in the genres that we as a family listen to and our 2500+ 16 bit CDs (some 33,501 tracks) are too big a collection to ignore, so again not really important to me.
Finally on the cost side of things. I have managed to cover the Lounge, Kitchen, 3 bedrooms and an Office/Library, and am working on the bathroom for a modest budget. I would not have been able to do this with any of the higher cost systems. So me a result.
All the very best, with your decision, most of all enjoy the music.