darkclouds, how loud do you listen?
Vert, I agree with you about the sound EQ they use -- I mentioned that in my review of the Model Two I did last fall. It's clearly intended to produce a warm, musical, non-fatiguing sound. Which is generally perfect for FM radio.
That said, I hooked my PCDP up to the line-in jack and it makes a great mini-system (better than all but the very good minisystems on the market).
Rick, I finally got to audition the PAL today. It's *smaller* that I expected! It's tiny! But the sound is excellent; in fact, because of the smaller speaker and fully closed enclosure (as oppsed to the ported design on the Model One/Two), it's less "chesty" or boomy in the upper bass. It also plays surprisingly loud for it's size. I'm definitely going to pick one up soon. Perfect as a shower radio and one you can take on picnics, camping, etc.
Vert's right about the PAL -- it's a headphone out, not a line-out. But it does have a line-in jack for hooking up a CD player (PCDP, for example).
Finally, I called Tivoli today about the CD unit. It has L/R RCA line-outs on the back, and an adapter will be included to hook it up to the Model Two or PAL. They'll have info up on the Tivoli site in about 1-2 weeks, and will start shipping them in 3-4 weeks.