Ipod Dock with direct out?????

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?

Any jitter will have come from the original rip and is now part of the file, unable to be removed. Am I wrong?

From what I have read, yes, you would be wrong, in context. There is a great article on jitter in a recent Stereophile or TAS issue that discussed jitter. Jitter is only an issue outside the digital realm, bringing it from analog to digital (i.e. making the master) and bringing it from digital back to analog. (So you are right in the sense of the original (master) rip, not the subsequent though and it cannot be removed. This is partly why early CD's were bad, according to the article.)