With inputs from the gurus on this ml and from Sherlock, i have decided to make use of the Via-ITX board for the MP3 player on which i will connect a 64MB IDE Flash for the Shrinked Operating System and an LCD Display along with a Remote via the serial/Paralell connectors.
You must be joking. If a guru advised you to do that, you should question whether he is a real guru. You say you want to build an mp3 player right? The mini-ITX board is expensive and it would be a total absolute waste to use it as an mp3 player only. It would be much cheaper to buy a SqueezeBox which is already geared up as an mp3 player. http://www.slimdevices.com/ . All the features you could want is already there including LCD, remote. I think the price was around rs8000. And because you say you will only have 64MB flash, then what you are trying to build will still need a PC to host your mp3 collection. And that is of course the same as the SqueezeBox.
If you actual reason was because you wanted to learn how to build a Linux embedded system, maybe yes. But even then, you would be better off getting a real embedded board with a MIPS or ARM cpu like something from ncoretech, beta comptronics or a local vendor.
Good luck and let us all know how things turn out which ever way you decide to do things.