Alright, i pretty much finished my site.
Its built with an AJAX driven directory listing. I then use flash External interface to tell flash to add a song to the playlist.
All this is done without leaving the current page, no refreshing or anything. This way, you can browse all music without the flash player reseting.
What I've done so far:
Created Template using Photoshop and lots of Alpha channels in pngs
Made template to work in html
Converted html site to php site
Created mysql login system
Created symlink (or whatever) on my linux based NAS that hosts the music (and website) so i could have it in the web directory and the windows share directory without moving anything
Created AJAX driven directory browsing, able to traverse backwords and forwards in directory structure
Created Flash music player that has playlist & basic controls
Created Flash external interface to talk to javascript
Setup javascript to send track name and location to flash to add it to the playlist
Heres a pick of it in action:

Things to do next:
Add way to save and load the playlist, most likely xml, maybe php/javascript reads the xml and sends each track to flash. This way i can have many different playlists.
Add current playing song external interface in flash to display in the div header bar
Add song progress
Add song buffer/load
Add volume control
Move site to my godaddy hosting, leave music on my NAS at home
Some problems i had:
Getting javascript to talk to flash -tried several dozen different variations, trial and error FTW
Getting Flash SOUND_COMPLETE event to work - the hard part was figuring out what does and doesnt work in ActionScript 3: Sound, SoundChannel
Recursive directory browsing - had trouble figuring out how to go backwards. what would we do without string concatenation?
Will post source code if anyone wants.