I finally installed the latest Slimserver V6 nightly and it seems to
work without any noticeable problem on my Buffalo Linkstation. I also
used the Softsqueeze version specified for it (from the web page).
This also works just fine but at some point today, my computer was
feeling very sluggish (Win XP Home, 1.6Ghz Centrino laptop).

Upon inspection of the Windows Task Manager, it revealed that the
javaw.exe process was consuming upwards of 96% of CPU while still able
to play the music from the Slimserver. I stopped the music and still
it was consuming the same amount of CPU. After shutting Softsqueeze
down and restarting, things went back to normal (close to 0% idle and
< 10% playing music).