One thing it occured to me now to add to my previous post; as long as iPod playback is limited to the use of it's internal DAC to make the conversion to an analog signal, iPods will be a compromise in terms of any expectations of being an effective front-end to a high-end system. Apple did recently announce a digital/USB protocol that is supposed to be implemented which would enable getting a digital output from an iPod (perhaps). If that actually happens it would have very promising potential in terms of getting much better sound by using the iPod as a digital front-end source through a system.
Alternatively you can build a PC-based front end by ripping digital files to your computer at full or lossless resolution, using an external DAC. That method can certainly provide a very rewarding front-end and will give most CD players a run for their money. That method would certainly sound better than iPod playback.
As an addendum to T_Bone's recommendation of an additional head-amp for improved iPod listening; I've read a few reviews that put the
Meier Audio $200 unit from Germany at the top of the heap for compact amplification. No experience myself with any of those units, but it may be a future investment as I do use my iPod frequently for similar purposes as Albert does. Vinnie, over at
Red Wine Audio does do a modification to the iPod's line-out circuit that is supposedly an improvement over the stock circuit. I believe it's received some favorable press but I have no experience with it.
Marco