So I created some kind of morse code to control the radio (code below).
Pressing one and releasing makes it start playing, or when already playing select the next station in the playlist. Pressing twice plays the previous station. Pressing and holding stops playback. Pressing twice but holding the second time makes it jump back to the first station on the playlist.
Second thing was showing what station was playing. For this I use the power led (code below). Where changing songs it will flash x times where x is the index in the playlist. To make it usable for big numbers, 4 short flashes are replaced by one long one. Seems to be working ok. The only minor problem is that you can only the this when you change stations, so you have to memorize the index. Maybe I'll change this later. I have the list of stations, printed out, laying next to the radio.
Third thing was a sleep function. Whenever I send an mpc playback command I also 'touch' a file. A cronjob running every 5 min checks to see if this file is modified more than 30 minutes ago. If so it stops playback. As a nice feature I first bring down the volume slowly first. The minor problem is that it is almost indistinguishable from my radio's sleep function

Fourth thing was start playing when the my radio alarm goes off. A simple cronjob that starts playback on working days at 7:59AM. I needed to install ntpclient to get the date and time correct. Still has some bugs, because sometimes the clock is behind a few hours. Probably the fault of the 200mhz broadcom chip, while set in the kernel as being a 240mhz, ntp not being able to get a new time.
Fifth thing was lowering the volume when ads are playing. Quite a bit of work fiddling around with code and bugs, but I is a very very nice feature. It still makes me smile whenever it detects an ad.
The the 'hardware' side. The ez-setup button is at the backside, and the leds are at the front, so this posed a problem. I first wanted to solder some wires and an external button to the ez-setup button contact, but when I open the router up, I saw 4 (?) tiny solder points and ditched the idea. So I build a jig out of Plexiglas, with a lever thingy, so now I can press the button from the front. And it also looks cool. I used a black marker to dim the red light coming from the soundcard.
That kind of sums it up. I flashed the router using Jeff's instructions (except for the serial connection). Thank you very much Jeff for sharing all the hard work. We share the same lastname by the way.
So here is a photo of the setup. Router on top of my stereo set. Router is hardwired to the internet. Router is also used for wifi, and my network printer is connected to it.

I've put the code in the next post, below.