Take a look at the new Wadia integrated amp with DAC made just for the Ipod, in the new Music Direct catalog. It is the same size as the 170, how cool.
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You will need one of the few docks which can extract the digital signal from the iPod anyway. To my knowledge the only such docks are made by Wadia, Onkyo and MSB (at varying price points). There is no other way to get the digital signal from the iPod to a DAC so you will need to factor one of these docks into your budget.