Originally Posted by deadhead12
I think the answer you are looking for can be found in this thread.
Damn, thanks. I'm frankly a little surprised there's not even a digital-out dock for ipods. It certainly seems possible, and I think the Peachtree iDecco I auditioned allowed for docking an ipod to bypass its internal dac+amp. It's possible it just bypassed the amp and I'm mistaken, but I hope that's not the case, because that was what made me decide I needed to upgrade my dac.
Edited by Zida - 10/17/10 at 12:18am
I've read around a bit and it seems that to achieve a digital out from an iPod you need a particular chip in your device, one that apple has to allow a company to use because their digital data is their own property, and they're not afraid to sue over it.
/basic gist whilst probably being partially incorrect, but close enough.