Wow these little boogers are source sensitive! I can't believe it but the Sansa Clip really does sound better than my 2G Touch with the 3's. Treble is smoother, less fatiguing and the soundstage is better. The Touch with lossless files is not bad at all (yes, there is a touch of the occasional sibilance using the grey silicone tips), but the clip is a subtle, but noticeable improvement. Note: I'm not using an amp.
It's hard to describe but the sound on the Touch is slightly tilted forward, or leans toward the higher frequencies. It also sounds thinner if that makes any sense. The Clip sounds more even and I'm able to listen to it for much longer periods of time. Very, very immersive. Dream Theater and Liquid Tension Experiment have not sounded better.
Oh man, wish I'd sprung for a higher capacity Clip, I had no idea it would become my DAP of choice.
HPA's suggestion to change your source was really spot on. Thank you!