If you have an iPod, then I assume you have an iTunes collection on a PC or Mac. If you also have wi-fi in your home or an ethernet outlet convenient to the audio system, you could instead get a Logitech Squeezebox Touch and bypass the iPod altogether. The Squeezebox Touch will find your digital music files residing on the same wi-fi. It can also channel any digital music services you've subscribed to.
The Squeezebox Touch costs less than the Wadia iTransport ($299 vs. $379), has a built-in 24/96 DAC, can use the internal DAC to output analog stereo headphone or R-L RCAs, or bypass the internal DAC to output SP/DIF in RCA coax or Toslink. It can accept input from wi-fi, Ethernet cable, or USB.