Ipod Dock with direct out?????

Carl, I have an iPod that is 160 gig that I have loaded all the CD's I own onto, at least the songs I care about; I loaded these via Apple Lossless and I have used somewhere around 35 gig of the iPod. Some of us find it very convenient to not have to go to the CD cabinet to get music, not to mention choosing shuffle and hearing all our music at random...and when you head out the door, you can take your music collection with you, if you so desire.

Carl, we're talking about putting lossless copies of your whole cd collection on to your IPOD and using it as the transport running into a DAC.

Well there you are... I had no idea the iPod could actually output digital and bypass it's own DAC.
I have much to learn!
I gather then the iPod's internal DAC is fairly ordinary?

I had no idea the iPod could actually output digital and bypass it's own DAC.

Well, the Wadia 170 iTransport is the only licensed product on the market to do this. But, as you can read in this thread, MSB offers the ability to modify the iPod to do this as well.

"They actually re-clock the digital signal so that they reduce jitter to almost zero."
I'm not too conversant with this topic, but I would have thought that jitter wasn't really an issue with music file playback (such as mp3, AAC, lossless etc) since the file is read and bufferred by the playback device (PC or iPod), as opposed to a disc which has to read and play the data on the fly.
Any jitter will have come from the original rip and is now part of the file, unable to be removed. Am I wrong?