For my office setup I used a Wadia 170i iPod dock going optical into the Pro-Ject MaiA I have up for sale. You can pick them up off eBay for $100-200 ish. Great built in DAC or you can stream digitally into any DAC. I modify iPods by removing the hard drive and upping the storage capacity with a 256 or 512 gig flash card and lo and behold I have weeks of music on a loop. I have everything on the iPod in Apple Lossless and have zero qualms on sound quality. I have a hard time discerning the faster bit rates....so haven't invested in a lot of HD ripped music. Works for me Peachtree Audio has a nice iPod dock (iDAC) that does the same thing.....but you will pay more for those.....
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