I have a second system in a small beach house. I use a classic ipod 160 with music in apple lossless. The key IMO is to get an ipod doc like the Pure i20 which has its own dac and bypasses the dac in the ipod. Or you could use the digital output from the i20 and use a better dac. either way this is a great and inexpensive way to listen to your CD collection and you don't have to get up to put in a new CD. It also doesn't take up much room if that is an issue.
Greg
Greg