It may not be perfect, but it is dreamy: I have a prototype AMB gamma-1 DAC velcro-strapped to my Mini^3. In my quest for a laptopless-portable system that can power my HD650s, I have a rockboxed iRiver H120 with lossless tracks feeding the gamma-1 DAC with an optical cable. The Mini^3 has a built-in battery and drives my Senns just fine.
The element I've been messing with is the power for the DAC, but I'm close:
I've driven it in the car with a cig-adapter with a USB tip (you can use USB to power the gamma-1 whilst using the optical in for data). This turned out to be a remarkably hazardous way to drive, so I had to give that up.
I purchased a neat tiny 5V voltage regulator from partsconnexion.com and have successfully powered the rig from a 9V battery. Now I'm exploring what's reasonable in rechargable batteries to pick a solution to stick with, but at this point, I think the proof of concept is achieved.
I'd say the weak link is the iRiver's optical data out: In theory it should be identical to my Mac's optical out with lossless tunes but doesn't sound like it. Next step there is to experiment with other audio formats (I used the Apple lossless tracks I had on hand for convenience) and update my rockbox firmware.
It's a pretty luggable package, whose overall dimensions is dictated by the headphones....