Unless I'm missing something, MCE 2005 with the My Movies plugin can do all of that. I'm sure there are free programs that can do it too, I'm just not aware of them.
"#3 This is where it gets tricky ... I would like to be able to have music on the same computer operate into a 2nd zone (so I could watch a movie and my wife could listen to music elsewhere) I know this will likely entail a second sound card."
Listen to music elsewhere on a different computer, or on a stereo connected to the same computer? Different computer, I don't see a problem (just streaming files), same computer I have no idea how to do. Why not just hook the stereo up to a different computer and let the main computer stream the files?
"#3 This is where it gets tricky ... I would like to be able to have music on the same computer operate into a 2nd zone (so I could watch a movie and my wife could listen to music elsewhere) I know this will likely entail a second sound card."
Listen to music elsewhere on a different computer, or on a stereo connected to the same computer? Different computer, I don't see a problem (just streaming files), same computer I have no idea how to do. Why not just hook the stereo up to a different computer and let the main computer stream the files?