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Right, thanks @aggi, @BRM, @mashton, @fizzy.bleach
So, the bit I need to sort first is the speakers and amp, and I'm gonna leave myself a few source options. Loving the suggestions thanks!
Such is the restricted space in the ceiling, I can only fit 4" speakers, so I am looking at a little pair of Yamaha NS-IC400.
Amp-wise, I can't wait for international shipping, and no time to DIY anything. OTP and shipped from UK on fleabay there are a few options, claimed power rating and price varies wildly, so any opinons on the following:
Topping TP22 Tripath £60 25WPC
SMSL SA-36A Tripath £35 20WPC
Pyle PFA300 Tripath £31 90WPC
Dayton audio DTA120 Tripath £120 60WPC
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I bought an SMSL Q5 from Amazon, it held up fine for a few months then the analog input failed. USB, optical and SPDIF continued working fine and Amazon let me return it for full refund. I've now bought the Q5 Pro. Seems to be holding up fine thus far. Dunno if that's a common issue but would definitely recommend Amazon for hassle-free returns, rather than ebay.
I looked into this a while ago. Richer Sounds had a variety of reasonable looking speakers from recognisable brands but finding reviews was difficult.
There are a variety of Raspberry Pi options for streaming, although personally I'd be tempted to cheat and go with a chromecast audio.
Alternatively, stick a tablet to the wall and lead the audio up from that. Can use that for streaming music, radio, etc (this makes quite a nice solution, also has the bonus of being able to look up recipes, etc).
Either RCA or headphone jack would be useful too for plugging in other stuff.