Tom,
Often these SBCs have mini PCI slots for adding ethernet and sometimes even firewire interfaces. I use one of the Alix boxes configured with Monowall as the firewall in our community's shared network and it has been running for probably 4 years now without a hitch.
They do make nice, basic music servers, but also have their limitations. They are generally limited in memory and processing power, which although fine for straight, native rate playback of music files, can not do things like EQ, SRC, etc. so you have to have a dac that can accept up to the same maximum sample rate of the highest resolution file you have -- though they will do 24/192 no problem.
As for the stripped down distro -- there already is one, and a very good one based on debian -- Voyage/MPD. Just google voyage linux and you'll find the wiki, which can take you through all the steps.
I had two of the same Alix servers that Doc does but sold them a while back -- only because I didn't really have the time or inclination to keep playing around with things and because the mmac mini does it for mme.
Also, if anybody is interested in Doc's alix board, I have a d-link D323 NAS with a pair of 1 tb drives in it that I have hacked to run NFS, so it is pretty much plug and play (if you know what you're doing with linux networking) with the alix board
-- Jim
Jim Rebman -- recovering audiophile
Equitech balanced power; uRendu, USB processor -> Musette DAC -> 5670 tube buffer -> Finale Audio F138 FFX -> Cain and Cain Abbys near-field).
s.e.x. 2.1 under construction. Want list: Stereomour II
All ICs homemade (speaker and power next)