ipod and dac?

Has anyone used an ipod or similar device with a high quality d/a converter? I love the idea of the convenience with the ipod and duplicating my cd collection, but I hate the idea of compressing the data and losing the sonic quality. I welcome any ideas on this topic as well as ideas relating to how to make the ipod and the like a high quality digital source. (Can you modify the recording rate to make the music quality better?) thx