wadia ipod dock-- anyone find faults?

I am also very interested in this ipod dock but see it requires a DAC, just what is a Digital to Analog Converter and what improvements do you gain from incorporating such a unit?

Tobias, being a big fan of the Batman I can truly appreciate your simplistic explanation. Thanks.

I was taught to believe there are no stupid questions.
As an analog fan I could not understand why someone would want to convert a digital signal to analog, just stick with you records and you should be fine. I did not find the compact disc satisfying myself so I pretty much never really came on board. Don't get me wrong, I have owned many CD's in my time just never really enjoyed them so much as my vinyl.
So we invent a digital signal and then invent a way to make it sound analog? Hmmmm. I always thought that less was more.
I like Tobias's explanation. I now love my iPod and the ease it gives me to enjoy my favorite recordings, in a lossless format of course.
When I don't understand something I am never embarrassed to ask a question, not asking would be more of an embarrassment. Does one have to be a rocket scientist to enjoy ones music, I think not.

Gunbei, please, no apology necessary. I enjoy a thread that causes one to think as well as to laugh, especially at ones self. I find there are many things in life I do not understand and question on a daily basis. I hope to never stop learning.

Yioryos, expose myself? Do you mean in my ignorance on the subject matter? I take no shame in exposing myself. By the way, I don't understand the scoring systems in golf or tennis, and I can't play chess either. Now I stand completely naked. Not a pretty sight.

Cerrot, all very valid points, hence my journey into the world of digital posts. I am slowly weaning myself from my vinyl dependency, and with the help of knowledgeable people like yourself and the all the other fine folks who contribute to posts like this it could and should be a fun ride. Thanks for your help guys.