Have you looked at the Aluratek Internet radio players?
Admittedly I have only seen ads for these and have no hands on experience with them. I always thought they were a bit pricey but I just went to the Aluratek web site and the prices were $99 to $130 which is better than what I remembered them to be.
These devices will stream radio stations as well as media from a local media server
Aluratek Internet Radios
http://aluratek.com/products/digital-music-internet-radios
