I would disagree with your friends statement. I have run my 160 GB Ipod through my headphone amps without any external DAC and it sounds very good.
That being said, the same songs on my hard drive played through my Logitech/Slim Devices Duet going digitally into my DAC sounds much better.
That being said, the same songs on my hard drive played through my Logitech/Slim Devices Duet going digitally into my DAC sounds much better.