1) Why would I mount the Office drives as network drives rather than simply loading the library on the HTPC? Is there a functional difference?
There are a couple of ways you can go about this...
You can copy the "library" from the server to the HTPC.
The "Library" in this case is a database that stores the locations of the files, not the files themselves. So your "Library" will tell MC that Bohemian Rhapsody, by Queen, is stored at c:\queen\a_night_at_the_opera\Bohemian_Rhapsody.ape (for instance). If you import this Library to another PC (your HTPC), this doesn't change. The Library still tells MC that that song is located at c:\queen\a_night_at_the_opera\Bohemian_Rhapsody.ape.
If your drive names don't match, it won't find it.
Or you can import your media to the HTPC and create a new "Library".
Or you can do as you say and simply load the Library as a client.
The main difference would be if you didn't want part of your library to show on your HTPC, or if you wanted to make changes to tags etc and not have them update one or the other...
2) Library sync..... do I even want to do this?
See above.
3) I want full quality always on my home network. So am I correct I dont need/want client mode?
This will happen automatically if you use a local copy of the library, or you can do this simply by setting the stream conversion to "None" in settings on the server machine. Not the best option if you intend to stream movies to your wireless devices, though...
4) Off topic but what is the difference between Sleep and Hibernate. Also what is the difference between Hibernate and Shut Down?
S3: Commonly referred to as Standby, Sleep, or Suspend to RAM. RAM remains powered
S4: Hibernation or Suspend to Disk. All content of main memory is saved to non-volatile memory such as a hard drive, and is powered down.
G2 (S5), Soft Off: G2/S5 is almost the same as G3 Mechanical Off, except that the PSU still supplies power, at a minimum, to the power button to allow return to S0. A full reboot is required. No previous content is retained. Other components may remain powered so the computer can "wake" on input from the keyboard, clock, modem, LAN, or USB device.
5) That is what I figured. I dislike sleep because it makes the power button blink constantly. I guess a piece of black electrical tape could fix that.
Or disconnect the wire to the LED on the switch if your OK with opening up the case...
6) I meant, does the PC that you are waking need to be wired?
Don't know TBH. I've never tried it.
Unfortunately I'm not familiar with JRemote, so can't say regarding your zone / server setup for it...