I agree, HDD is just getting silly-cheap. Looking at terrabyte external HD's for well under a hundred quid on ebay!
Also, check out new WiFi squeezebox remote. Neat to not have to point it anything, just wifi to your pc to control the playing music.
http://www.logitech.com/index.cfm/speakers_audio/wireless_music_systems/devices/3817&cl=us,en
album art on screen also ala Sonos.
A couple of hundred right now, but reckon that will drop too.
I THINK this is for the squeezebox and not a seperate device in it's own right, but I could be wrong havent studied it inside out.
Jules - yes please! would appreciate any help with laptop. I have posh new coffee machine, so I can pay you in cappuccinos... 
Cheers