It would work though if the receiver is booted from a windows machine
I'd have to look at it, but, based on my memory of the protocols/implementation, you'd have to hack/modify the windows executable to point it to the empeg box. Once that is done, then certainly, it's possible to serve the files off (does displayserver support resumable http connections? The receiver requests 32k of the song at a time.) There would have to be some hacking into displayserver as well, as a heck of a lot of the logic of the unit's operation comes from the server side... ala the other part of the perl puzzle.
I'm all for it if we can hack the windows part to return the server as being the empeg.... Maybe that could be a future enhancement to the product...