I think if we want to make a broad sweeping assumption with regards to sound quality, analog vs digital signal feed, and the JH3A it might be as folllows: the better quality the signal you feed the jh3A, the better the end result will sound...which would mean digital signal is better than analog..... at least in theory that should be the end of it. which means... lets pretend you had a digital out (feeding the jh3a a straignt digital signal) from an ipod, and you had an LOD from an ipod (feeding an analog signal to the jh3a which it then has to convert to digital then back to analog), then in theory the digital out would sound better because it bypasses the ipods dac which makes for one less weak link and one less conversion the jh3a has to do since it would already be recieving the digital signal it needs. i keep saying in theory because no one here has tried the jh3a from in ipod with both a digital out and a LOD out so we dont really have any idea how drastic, or miniscule the difference would be. that said.. the whole idea with this thing is that its STILL supposed to sound totally AMAZING even if you feed it an ipod with an LOD. Jaime and JH audio told me just that. so the bottom line in all of this is - we shall see. I for one plan on using an ipod to lod to jh3a most of the time and will gladly call it a day until someone invents an ultra small ultra cheap digital out for an ipod.