OK What's next with my iPod?


So, I've got an iPod Touch with many uncompressed CDs on it and it sounds surprisingly good through my Sennheiser headphones.
I connected it to an input on my preamp and got music. But it doesn't really sound very good.
What intermediary pieces of equipment do I need between the Touch and the preamp to get sound that rivals/exceeds my CDP? WHat would financially to accomplish this without foregoing my first born child?

Thanks.
jgiacalo
The most performance I've achieved with an iPod (and Mac), is the Naim DAC or Naim Uniti or UnitiQute. The Naim DAC even made a Linn CD12 sound better.
The Peachtree iDecco will bypass the Ipod's DAC and use its own Sabre DAC. I love mine not only for Ipod, but also for use as a DAC for CDs and even sound from the cable box sounds much better (for example, watching concerts on Palladia and other music channels). I also use it as a preamp.

You also may want to check the settings on the Ipod settings to make sure that the EQ is turned off.
If you have your own DAC, a cheap and elegant solution is to buy an AppleTV for $225, sync it with i-tunes (160 GB), and use its digital output to send the digital bitstream directly into your DAC.
Thanks for all of your input. You've given me several solutions that I will research further.
Wadia 170i is the ticket. only catch is you'll need a good DAC to make it sound good. bottom line is bypassing the DAC in the apple device. get good ic's and an upgraded pc to take it up another notch. my ipod now comes very close to a good redbook recording. couldn't be any happier.