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My wish list is
1. Very high quality to connect to my M.568
2. Support for uncompressed MP3 sound files
3. 260+ GB capacity (for 600 CDs)
4. Remote control
5. Digital output
6. Must work independently of my PCs, hence must be a standalone MP3 server

Have any of you come across such a device?

I've never heard of "uncompressed MP3"; MP3 is generally a compressed format, lossy by definition. Other formats (FLAC, etc) are lossless (and still compressed), but not MP3.

In any case, there are a few manufacturers. One is the Lansonic, here's a link that describes it:
http://www.audiorevolution.com/equip/lansonic/

There are others.

Having been down that path before, I wouldn't recommend that. The problem with a path like that is you're very much "set in stone" with that device. It's difficult to extend or change a device like that.

If you could stick a cheap PC in the basement or a closet or something, something like the SlimServer (or Roku, not recommended for reasons already stated) is a better solution. Server-based software means you have tons of options; server based software like the SlimServer evolves over time. Standalone products do not.

861, 800, G68, Sony G90, Snell&Wilcox Interpolat