Mac related questions - network drive, sleep, file formats & transcoding

[becks]

Hello,
I am using a mac mini as my server, and a Uniti Lite as player.
I manage my music with iTunes, the library sits on a usb external drive connected to an Airport Extreme router, acting as a network drive.
Have a few question which I couldn't find answers in the guide:

1. I tried to add the path of the music folder - /volumes/{volume name/{folder name} but couldn't get MinimServer to see it. The volume is mounted.
Is there a problem with such a setup?

2. I have a sleep timer on my mac mini, can MinimServer disable idle sleep only while serving files, not when running idle in the background?

3. If all my music is stored as AIFF, is there a point in transcoding to WAV?

Thanks