Get the new Arcam DrDock. Better specs (lower jitter spdif transciver - Wolfson 8804), better finish and cheaper.
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I haven't heard either transport. I tried the older Wadia and hated it. It sounded fine, but it was a pain the the butt to control. Some iPods' click wheels don't work, sometimes the iPod had to be removed and re-inserted, etc. A disaster IMO.
I returned it and bought a gen 1 Apple TV, which is pretty much a 160 gb iPod with optical output. There's not very many of those around though. The new ones don't have an internal hard drive.
A lot of people use the Pure i20 (I think that's the model number). I've heard several say it sounds better than the Wadia. It costs $99, so I don't think you could go wrong. I'd look into that if you're considering all your options.