Digital output from your i-Pod? YES its now possible and the improvement can be great if you elect to store your music losslessly.

ND-S1

In line with the growing convergence in entertainment formats, Onkyo has developed a sophisticated interface device for incorporating an iPod into your home entertainment system. The ND-S1 digital media transport not only provides a seamless link between your portable media player and your home theatre, it also lets you sync an iPod with iTunes at the press of a button. A single USB cable connects the ND-S1 to your PC, while a single digital audio output connects it to your compatible A/V receiver, amplifier, or mini system. Accurate, high-definition digital sound is ensured, thanks to a high-precision circuit clock.