I am running Music Cabinet on OSX Mountain Lion Server with out problem. It did take a while for initial scan. My music library is about 700 gb , 100,00 plus songs. I followed the directions for postgres default install, default java install, and edited the .sh file to match my configuration. Hakko (the developer) used a Mac. Music Cabinet runs great on OSX however development stopped prior to Mavericks, that may have introduced some new problems.
Where do you put the LAME decoders? Mine are in Applications/Subsonic/transcode.