Grokit, I actually just got one. It definitely works.
So far I've been extremely impressed with its sound quality. It creates a marvelous illusion of space, even when compared to the Pico. Unfortunately, it's way too noisy to use with IEMs. But I'm sufficiently impressed with it that I've ordered a $10 resistor adaptor to use with it. Hopefully it'll drop the noise floor below an audible level without compromising anything else.
I'm also amazed by how good it sounds with the LCD-2s. It has no power supply of its own. I never would have guessed it to work at all, led alone sound good with full sizers.
Edit: The Headstreamer does require a firmware update before working properly with the S3. It will otherwise only play audio at an extremely low volume.
Edited by nnotis - 9/30/12 at 9:19pm