The Tivoli PAL has a VERY clean, high quality headphone amp. As for the distortion the previous poster mentioned, he is overloading the input circuit on his Tivoli. Overload any input circuit, and there will be distortion. This says nothing about performance! Turn the output level down on the device you're using to feed your Tivoli until the distortion goes away, and enjoy!
It's possible to overload the input on ANY amplifier, although more difficult with some than others. THIS SAYS NOTHING ABOUT QUALITY!
Having said that, I don't find the PAL particularly sensitive to overload when driven by portable CD players, my RaveMP solid state mp3 player, my Archos Jukebox recorder, Delphi XM Satellite radio, Apex DVD player, or anything else I've driven it with! The PAL is a superb piece of gear! Wait till you hear how clean fm stereo sounds through the headphone jack! It is truly a "super-tuner" in a tiny, inexpensive, weather-resistant package. And yes, it has a great headphone amp! What's not to like?