Check out the I-river Imp series. The cd player I have from them, the imp 550 kicks serious butt. I can't say enough about this cd player. And it has line out and optical out. It is also razer thin.
http://www.iriver.com/html/product/prpa_product.asp?pidx=22
http://www.iriver.com/html/product/prpa_product.asp?pidx=22