The Wadia continues to perplex me. In order to get music onto the iPod in the first place, you need to have the music on a computer. A Roku Labs Soundbridge or SlimDevices Squeezebox 3 will allow you to access the music library on your computer directly, if you have an ethernet connection available (wired or wireless). The Slim Center software interfaces directly with iTunes, while the Roku Labs device can interface with iTunes via Firefly server, so there are no format issues. Either device has a digital output, enabling connection to whatever DAC I choose. While the Wadia unit does not require ethernet, it also restricts me to the 160 GB of music I have on my iPod, which is a fraction of the music I have on computer (which is a fraction of my entire music library, but I'm plugging away at it). So, since either the Roku Labs or the Squeezebox let me get a digital signal directly from my computer, why bother to use the iPod as a server at all, when the computer that feeds the iPod will do the job? The only reason for the Wadia I can see so far is that neither of the devices I mentioned output video, but the iPod is not going to get you a top quality video signal in any event.
So, I can get the Wadia, physically connect my iPod to it, and have access to the 160 GB of music on it. Or I can have my computer on, and have access to the embarrassingly large amount of music there at any time, without even having to get my iPod out of its carrying case.
With the ease of using a computer as a music server these days, why would you even want to use an iPod for the job? The only reason I can see would be the absence of an ethernet connection, but wireless routers are pretty cheap these days.
Color me confused.