Not sure if I get the point of the Wadia iPod dock

The Wadia by passes the internal dac that is in the iPod. You can choose your own dac for better performance. GHS

there are other solutions out there that don't require an iPod or computer. I've been looking at the Western Digital TV which is about $100 and connects directly to a usb hard drive. Unlike the Wadia, it must be connected to a TV but also plays high def movies.

http://www.wdc.com/en/products/products.asp?driveid=572

Can you run the Wadia without a dac ?

NO you need some type of dac either the one in a cd player, if it has digital inputs or a dac by itself.

@ Jpgsf: Yes, but only with a analog output. You will need a DAC to use the digital output.