iPod to DAC Connection


I was disappointed that the fourth generation iPod announced this week did not have a digital output so that it could be hooked up to an DAC. I think it could provide near audiophile caliber output if you used the best AIFF or Apple Loseless processing options and a digital output. Now, I'm wondering if it is possible to have a digital output for it by somehow hooking up a cable to the iPod itself or the dock that would be Firewire or USB 2.0 at the iPod/dock end and S/PDIF at the other end to plug into a DAC. Anyone know if this is possible? Does such a cable exist, or maybe the digital bits coming out of a Firewire output are different from those going through a coaxial data cable? Any insights would be appreciated.
bruce_1
An update: I got the Squeezebox, hocked it up with an ethernet cable and, with much help from Kevin at Slim Devices, got it to play my iTunes playlists. Then I noticed it would not play all the songs on the playlist. Turns out that because of some licensing policy, no 3td party device hooked up to an Apple computer will play songs that have been downloaded to the iMac. So I could either keep the Squeezebox and not be able to play downloaded music, or get an Airport Express and play everything, but through a optical output instead of coax into my DAC. I chose to go the Airport Express route but use the ethernet cable I already had for the Squeezebox. I get the computer programmed at the Apple store in Chicago for this, come home... and it doesn't work. Apparently the ethernet switch I'm using (so I can hook up both the Airport Express and my cable modem) is not allowing the connection to be made to the Airport Express. I'm going to try a "Dumb" hub in place of the switch, and if that doesn't work I'll have to get the Airport Extreme card and do it wireless. That is, unless one of you knows of some way to do this with the ethernet cable that I haven't tried?
Bruce_1, Did you make progress on getting your digital music through your router to Airport Express? Thanks for posting the limitation of Mac iTunes (I assume) downloads not being playable through third party gear like Squeezebox. Have any idea what the logic behind that is, given that iTunes is a multiplatform solution to begin with?
Jayboard,
I was never able to find a "dumb ethernet hub", which the people at the Apple help line said I would have to use instead of a switch or router. It would have worked to run an ethernet cable directly from out of the computer to the Airport Express, but then I would have to physically change the cables at the back of the computer to listen to music or be on the internet--unacceptable. So I returned the switch and cable to OfficeMax (who gave me a refund no questions asked, God bless them), and got the Airport Extreme card from Apple, snapped it in place (very simple and easy to do), ran the software that came with the AE, and voila!, I've got iTunes playing on my main system. Using Apple Loseless we can't tell a difference between the original CD and the iTunes copy (so far--more listening necessary). As the Slim Devices people explained it, Apple is not eager to license the ability for a third party device to be able to play downloaded iTunes. Short term they will have people go my route and buy an Airport Express to be able to play downloaded music, so it appears to be a good strategy, but longterm this reluctance to license technology explains why the arguably best computer operating system and hardware has a worldwide market share of less than 2%. Apparently it is the Sony Betamax case study all over again. Being best and first doesn't mean you'll win in the end. Apple will face increased competition for the iPod, iTunes, and Airport Express, will slowly lose market share and by the time they change their strategy to try and regain lost market share it will be too late. The good news is that I'll have another example of what not to do to use in my classes (I teach graduate marketing courses at a state university).
Apple's 5th generation ipod was introduced this past week and their lack of interest in the audiophile market was once again evident. Like past generation ipods, their newest model lacks a digital output for connecting to a DAC. So, we still wait for a model that we can download music on to take to audition high-end DAC's at dealers.
There are any number of laptop computers with built in digital I/O that will give you portability with D/A connectivity. Even without built in I/O, there are a growing number of USB and Firewire equipped D/As.