Just received my HRT iStreamer today. Read more about it here:
http://www.highresolutiontechnologies.com/istreamer/This thing is the bee's knees. For $200 it extracts a digital signal from the line out plug on the bottom of your iPod Classic, iPad, or iTouch via the supplied cable and feeds it to the iStreamer, which is a DAC. Also charges you idevice too. This thing is purpose built to work with aforementioned Apple devices. If your store your song files in a lossless format on your Apple device, the resulting fidelity is amazing.
In comparison:
Wadia 170 iTransport is $379, but doesn't include a DAC.
Onkyo ND-S1 Transport Dock is $264, but doesn't include a DAC. And, good luck finding one in the U.S.
I am not aware of a comparable, more affordable way to get hi-fidelity music out of an iPod and feed it into you 2-channel system.