Don't have a Touch myself, but have a few other S'boxes. You can use either option. In terms of using self-powered speakers, get a adapter to connect to the RCA jacks on Touch rather than headphone out - should have better sound. You should be able to run the server on the pc where your music is stored, the you could use squeezeplay, softsqueeze or squeezeslave as a player on the other pc's to access your library from there. You can also use mysqueze.com as a server for your Touch, but you won't have access to your local music files from there.
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