( Mid 2010) Mac Mini - 5.1/7/1 analog?

Hi,


I have a complicated problem. I am using the Mac Mini as a Media server/HTPC.


It will be stored in a Media Closet. I have a couple questions, I would greatly appreciate any help answering.


1) I realize that the only 5.1/7.1 out is the optical port/miniack. My question is would this work?


I'm looking to play higher quality playback. Lossless/Flac and I have read that the optical has limitations and can not play lossless. Could I use a Griffen Firewave from my firewire port to create a analog 5.1 connection to my pre amp and be able to play those high resolution videos/songs such as lossless? Or does the firewire from the macmini also have its' limitations?


2)I have the Harmony 1100 and the IR Extender. Can I control my Mac Mini with this remote. All I will be using this Mac Mini for would be Plex as a media server for my 1080p .mkv files and my music collection. I just want to be able to use this one remote since the mac will be in a media closet.


3) Would Mac Snow Leopard Server have any advantages over regular snow leopard if I am planning on solely using this macmini as a HTPC?


Thanks again guys!