Method and system for providing on-demand media streaming from a user's own library to a receiving device of the user

A system and method are provided for on-demand media streaming from a user's own media library to a user's receiving device that may be located in a different location from that where the media library is stored. The present invention provides an out-of-the box on-demand media server device that may be used by itself, in conjunction with a personal computer, or in conjunction with a personal home stereo system or video system. The on-demand media server includes security mechanisms that allow a user to establish a private server that only the user may communicate with and gain access to the user's media library. In one particular embodiment, a smart card or other removable media are used as a security device to ensure that access to the media files on the user's personal on-demand media streaming server is limited to the user. In addition, the system and method provides an on-demand conversion of the media in the user's personal media library to an appropriate format.