Computerless button???

So, I've been reading some things on the web today about Arduino and ethernet. Here's what I got:

• Nate mentioned that arduino doesn't have enough memory to adequately deal with audio. Well, maybe your srub board does, but the new Arduino Duemilanove (that's 2009 for those of you that don't habla italiano) has TWICE the memory of the Diecimila. But as Billy Mays said, "And that's not all!" The reason it has twice the memory is that it uses a new Atmel chip, the ATMega328 (as opposed to the ol' 168). Like the 168, the 238 by itself is really cheap ($5ish or less), and you can just pop it in to your board in place of the 168! Brilliant! I don't know if even doubling the memory would fix the problem, but experimenting would be cheap.
• Then I read about this sweet project from the folks at NYC Resistor. It's a server library called Webduino. The guy who did the write up on Google Code clearly knows more about servers and the interwebs than me, so I won't butcher the jargon. Read about it yourself, here. Also, he's got a slideshow explaining it that I can very nearly understand!

At this point, I must defer to my much MUCH more informed colleagues. Would these two things in combination allow for the button to function independent of a PC? Doing so would allow us more freedom in button placement, as we wouldn't need to worry so much about putting a computer somewhere. However, it would make the buttons themselves more expensive and more costly to replace if damaged or stolen. Thoughts?