Apartment system iPod to headphones


I am now renting an apartment and rather than duplicate my home systems I will instead go just with headphones. I have half my music on a classic 120 G iPod and will buy another for the other half. (I want to travel with my music as well). My music is stored in Apple Lossless format on the iPod. I already know what I want for a headphone rig. I am willing to spend good money on a device to get the bits and a DAC to send analog to the headamp. I want the best method to extract the music from the iPod and get it to my headphone amp. How can I extract the exact bits from the iPod in a digital stream and preserve the fidelity? What have you tried that works for you? I will not have a computer, just the iPod that travels with me to the apartment several times a month. Thanks.
tgrisham
Thanks. Right now I have a Bottlehead Crack that I built and an ASL Antique Sound Lab MGHead. both are tubed amplifiers and I prefer tubes with my Senn HD600. I am open to other options but don't want to spend too much on this small application. The Pure i-20 looks good if it's still available. Esp for $100. That leaves me room for another set of cans and amp. I have considered the Schiit amps with their entry level at $349 for a tubed amp.
I have the Purei20 and also the Wadia i170 docks. Big difference in cost, no difference in sound that I can hear. As long as you get a dock that bypasses the iPods internal dac you should be good to go.
This is certainly cheap:

http://www.sendstation.com/us/products/pocketdock/lineout-miniusb.html

I have used it with a mini to RCA adapter and my own RCA cables
Peachtree Audio MusicBox!Just can't say enough good things about this little jewel!
iPod Nano Gen.III docked on top driving either Sonus Faber Toy Monitors or Sennheiser HD598's the sound is sweet,refined & always musically satisfying!