You're line of thinking is right on, Bob...
But disk players don't have USB outputs. You would have to source music from the network, and rip from another PC unless you found one with a CD-ROM drive - but setting that up to play music in Linux would be another task to plan for. And you need to choose a micro puter that has the processing power to do the job. The nohrtek is not powerful enough, imo. But the latest Atom dual core should be enough to run linux, foobar, decode flac, convolver acoustic correction and a couple effects DSP plug ins without a problem. In a couple months they will take another jump in power so it will be here soon enough. External power supply, OS on a flash drive, data on network, no fan, low price - tempting!
The article on AC is very interesting and technically detailed.