Ipod Touch as a music server

Have decided to use my Touch as a music server for my hi-fi system.
How would I get the very best out of the Touch whilst connected to my system?
I have AIFF files loaded to the Touch. I'm still in need of a DAC; any suggestions?
Current system: Touch>Stello U2 USB converter>(DAC)>CA840aV2 amp>Jamo standmounts + REL Quakes(2). Any advice appreciated.
Get a good dock for it (one that will extract the digital stream from the iPod), I use the Cambridge iD100, a good Toslink or Coax cable, I like silver coax, a DAC that will suit your tastes then link it up with some decent interconnects. Your good to go.

Ditto the above advice. I'm very happy with my Touch as the source connected to a PURE i-20 dock. I use a good coax cable 1.5 meters in length to connect to a DAC. The quality of the digital signal is good enough for very good downstream gear. The only limitation is 16/44.1 resolution, but the Touch outputs very good 16/44.1.
Many thanks for the dock options; will check them out.
Another option is the Peachtree iDAC. It will solve your DAC and dock problems in one shot. Good reviews and there is one (new) for sale in the classifieds. (I am not the seller.
I have the idac and can highly recommend it. It comes with a remote and has inputs for USB, 2x coax, 2x optical. There is a review in the newest Stereophile.