I went to a party this weekend and they had a karaoke system set up using a generation 1 apple tv with the built in HD. My buddy wants me to build him one like the system they had. He was impressed mostly with the interface, ease of use, lack of cds.

Now the audio portion is easy enough wireless mics, mixer, amp but I don't know if there is anything besides an apple tv that would have a built in hard drive or would be able to access a nas drive. I would just get an apple tv but I don't see a lot of reputable places to buy them new and I don't think he would be interested in a used or refurbished one. Squeezebox and roku came to mind but I see squeezbox is audio only and I have little to no experience with roku to know if it will stream and function off a nas drive or just the internet. Any ideas or thoughts are welcome

Contact some of your local Apple Stores or check the Apple website for refurbished ones.

XBMC. [Link: wiki.xbmc.org]

i have two 160GB brand new in wrapper. let me know if you want them.

Roku is currently having tons of issues with Netflix (actually only one issue...it doesn't work). The older units didn't have the problem. If your client is getting it for Netflix, stay away from Roku.