Moreover, if your music is in more esoteric formats like FLAC, Ogg Vorbis, or Musepack, these can be converted on the fly to different formats (usually WAV), so that your entire music collection can be listened to by normal iTunes clients.
It also features a web interface that can be used to control components of the server, trigger database updates, and create playlists.
Preparing your system
First of all install ID3 tag support (so mt-daapd can read mp3 files)
sudo apt-get install libid3tag0
Now install mt-daapd using the following command
sudo apt-get install mt-daapd
Configuration file is located at /etc/mt-daapd.conf, so make your changes there and test this file using
the following command
sudo mt-daapd -f
Also you have to remember to add the Avahi Daemon to your startup scripts with the following command
sudo update-rc.d avahi-daemon defaults
that provides mt-daapd the Apple ZeroConf services (also known as "Rendezvous" or "Bonjour"). Otherwise your iTunes machines won't be able to discover the mt-daapd server even thou the server itself is running properly.
To enable smart playlists you have to use the administration WebUI with http://localhost:3689.
Now it will prompt for the username and password as admin and your password setup in mt-daapd.conf file
Once it opens you should see the following screen
You can edit smart playlists under the smart playlists tab either directly as logic script or using the wizard (provided) to fill the rules for playlist generation point-n-click way.
Configuration setup screen