Using Mac Mini as a home music server

Hi,
I own an unused 2009 Mac Mini and some 800G of music (in Apple Lossless format). I was thinking of upgrading Mac Mini's internal HD to 1TB, download my Music into the Mac Mini and wire it to one of our 2 Hi-Fi sound systems.
As we also own a SONOS system, the music could then be played wirelessly into different locations within our house, including another Hi-Fi sound system.
The other pieces of hardware we own are :
- One 2010 Mac Book Pro w. Mountain Lion (350 G / 8 G of RAM)
- One 2011 Apple TV
- One Ipad 2 (64 G)
- Two Iphones 4S (16 G)
- 3 other Ipods
Of course, we would like the music to be available from all these devices as well, especially to be able to manage our Iphones/Ipods from our MacBook Pro (where agenda, contacts, pictures... resides under two different profiles - and two Itunes/appstore accounts)
I am asking here in order to validate :
Q1 - Is that this is a workable architecture, or I am mistaken in this design ?
Q1.1 - Would it be more efficient to put the music library on an extarnal drive lwired to the Router and access it from all devices ?
Q1.2 - Will access from the other devices will be best acheived by granting read/write privileges to the users on the Mac Pro on the Mac Mini (so Mac Pro Itune can point directly to the remote library), or by sharing the music library via music sharing ?
Q2 - would I need a special server OS on the Mac Mini ?
Here is a schema.
Many thanks for your input.

iTunes: How to move your music to a new computer [or another drive] - http://support.apple.com/kb/HT4527
do not confuse moving your whole folder and library with moving just media files as in
iTunes for Mac: Moving your iTunes Media folder - http://support.apple.com/kb/HT1449
Quick answer if you let iTunes manage your music: Copy the whole iTunes folder and all its subfolders and files intact to the other drive. Start iTunes with the option key held down and guide it to the new location of the library.
If your whole iTunes folder + library files is already on the external, simply start the other computer's iTunes with the option key held down after the drive has mounted.

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Firstly, thank you all responders. ..Your input was indeed considered.
Well, I did exactly as I endeavored and turned my new Mac mini into a music server. So far so good. A few comments regarding the process:
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As posted previously:
Reinstall OS X without erasing the drive
Do the following:
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Repairing the Hard Drive and Permissions
Boot from your OS X Installer disc. After the installer loads select your language and click on the Continue button. When the menu bar appears select Disk Utility from the Installer menu (Utilities menu for Tiger, Leopard or Snow Leopard.) After DU loads select your hard drive entry (mfgr.'s ID and drive size) from the the left side list. In the DU status area you will see an entry for the S.M.A.R.T. status of the hard drive. If it does not say "Verified" then the hard drive is failing or failed. (SMART status is not reported on external Firewire or USB drives.) If the drive is "Verified" then select your OS X volume from the list on the left (sub-entry below the drive entry,) click on the First Aid tab, then click on the Repair Disk button. If DU reports any errors that have been fixed, then re-run Repair Disk until no errors are reported. If no errors are reported click on the Repair Permissions button. Wait until the operation completes, then quit DU and return to the installer. Now restart normally.
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https://www.apple.com/osx/server/
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munirul wrote:
Hi:
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please discuss the hardware and software issues.
Munir
There are several possible ways, some depend on the type of Cable TV system you have. First I am going to assume you are an American. While Cable TV is available in other countries, for example here in the UK, it ***** so bad in the UK that you are unlikely to be using it here.
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http://www.ammesset.com/irecord/
http://project-tigershark.com/people/rob/blog/2007/01/14/cable-tv-mac-firewire-h d-pvr/
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