There's 2 ways to do this feasably. One is to use a computer CDROM as the transport and using a microcontroller run it via the ATA interface. This is a path a few people on DIY audio have taken. And before people complain about the sound, companies like Redgum use a cdrom drive, and I believe even a current Marantz uses a CDROM drive for it's transport, so if done proplery it can yield quite low jitter.
The other option is to look for a CD-PRO2 kit. It uses a very high end transport, and comes with a controll PCB and only needs microconoller input for basic functions. Then run the I2S line into a AES3/EBU or a S/PDIF output.
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