I have no real connection to Chord but they are doing me a massive favour by seeing what can be done with my Walkman's as I may switch from physical music to pc-based... if I do the Hugo will be the first link in the chain, then I'll have to decide on a dedicated pc with humongous storage or get a nifty hard-drive if I decide to get technical.
PC based music is the way to go.. have done it for years now, network streaming from a QNAP NAS to my Linn Akurate DS (network player). It was WAY better than CD, and has changed the way I listen to music.
The QNAP Silent NAS seems interesting. With SSD disks I guess it will be pretty silent so you could place it wherever you want.. (mine is not silent and has to be in a another room).
Don't think it will work directly with the Hugo, but you could always stream from the NAS to a computer/laptop/iDevice/whatever and from that device connect to the Hugo.
PlugPlayer seems to not down sampling high res flac files, so if that is so you could stream directly from your NAS to a iDevice and then play it directly on your Hugo. And you could upload flac files from the NAS on to the iDevice and play on the go.
Lots of possibilities..