Using my iPod 5G with 256 AAC VBR (converted from lossless ripped via EAC), my Etymotic ER4Ps (with custom molded inserts) and my Headphile modified HF-1s sound amazing. It is not as good as through my more expensive headphone amp setup, but I would DEFINITELY call it audiophile quality.
I have also heard that a Red Wine modified iPod proves an excellent source for 2 channel systems.
I have also heard that a Red Wine modified iPod proves an excellent source for 2 channel systems.