Yes, the old machine has to be connected to the network. It can be wifi
or wired (ethernet). 

My evolution of SB servers has been:

1) old surplus Dell running the server, accessing music library on a
LinkStation HG NAS. That lasted about 1-2 months before I got brave
enough for...

2) running the server directly on the LinkStation HG NAS (hacked via
instructions on this forum and on www.nas-central.org). That lasted a
couple years until 

3) a friend gave me a LinkStation Pro NAS, which I used for both server
and music storage, hacking it using the same forums as before.

4) Then about three years ago I tired of all the hoops required to keep
the server running on a NAS, especially because I was running a lot of
beta versions of the server software while testing beta SB hardware. So
I bought a headless "nettop" pc for running the server and holding the
music library. It's a small computer with a low-energy Intel Atom CPU.
It draws about 23w when running, and can go into suspend/hibernate when
not streaming. In suspend it draws about 3w, and can be woken up and
running LMS in less than 5 seconds. I installed 2GB RAM and a 500GB
laptop hard drive (quiet, low energy) and the whole thing came to less
than US$300 -- and that was 3 years ago.

There are a lot of good small form factor PCs available for a
reasonable price, but even if you have an old ugly beast, one of the
beauties of the SB system is that you can shove the server out of sight
in a closet or basement somewhere. 

See my sig for more details.


-- 
aubuti

Nothing high-end, but music anywhere I want it, and it's '100% wind
powered' (http://www.cleancurrents.com/). 'MSI single-core Atom
mini-desktop'
(http://www.newegg.com/Product/Product.aspx?Item=N82E16856167032)
(Debian Lenny 5.0.6) feeding: Living room: SB Touch > 'NAD C325 BEE'
(http://nadelectronics.com/products/hifi-amplifiers/C-325BEE-Stereo-Integrated-Amplifier?products/hifi-amplifiers/C325BEE-Stereo-Integrated-Amplifier)
> 'Vandersteen 1' (http://www.vandersteen.com/pages/1clit.html);
Kitchen/Dining: 'SB2'
(http://replay.waybackmachine.org/20050428023747/http://www.slimdevices.com/)
> 'AudioSource Amp100'
(http://www.amazon.com/AudioSource-AMP-100-2-Channel-Bridgeable-Amplifier/dp/B00026BQJ6)
> 2 pair of 'Polk RC60i'
(http://www.polkaudio.com/customaudio/rci/index.php?s=rc60i); Basement:
'SB2'
(http://replay.waybackmachine.org/20050428023747/http://www.slimdevices.com/)
> 'JVC JA-S44'
(http://www.audiokarma.org/forums/showthread.php?t=204813) > 'ESS
Tempest LS8'
(http://www.canuckaudiomart.com/details/205237-ess_tempest_ls_8_speakers/);
Bedroom: Boom; Study: SB Radio; Backyard deck: 'SB Receiver'
(http://replay.waybackmachine.org/20080124175538/http://www.slimdevices.com/)
> 'AudioSource Amp100'
(http://www.amazon.com/AudioSource-AMP-100-2-Channel-Bridgeable-Amplifier/dp/B00026BQJ6)
> 'Polk Atrium 45'
(http://www.polkaudio.com/homeaudio/atrium/index.php#atrium45); Kid's
bedroom: 'SB3'
(http://replay.waybackmachine.org/20051210015952/http://slimdevices.com/)
> 'Klipsch ProMedia 2.0'
(http://www.klipsch.com.cn/na-en/products/promedia-ultra-2-0-overview/);
Roaming controllers: iPod touch with iPeng, 3 'SB Duet'
(http://replay.waybackmachine.org/20080124175538/http://www.slimdevices.com/)
Controllers, 'Nokia N800'
(http://www.nokiausa.com/find-products/phones/nokia-n800-r6); Limbo:one
more 'SBR'
(http://replay.waybackmachine.org/20080124175538/http://www.slimdevices.com/)
http://www.last.fm/user/aubuti/
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