Forget ipod with digital out. Use Plugplayer.

After scouring the internet for days looking for a decent dock with digital out for an ipod touch I have finally taken the lateral approach and purchased Plugplayer from the appstore for around four bucks.
Plugplayer allows me to wirelessly stream audio from any networked media storage (WD My Book world) to any media player on the same network (WDTV live) The WDTV live then feeds my DAC via toslink and my LCD tv via HDMI. Plugplayer on an Iphone or Ipod touch provides a fantastic Itunes like interface for your stored music that you can carry around the house with you, anywhere that is within range of your wireless router. This truley the ultimate solution for a portable device with a superb interface but limited sorage capacity. There is approximately 600 gigs of uncompressed music and videos on my networked drive. My Ipod touch only holds 16gigs. The only problem is that Plugplayer does not display Itunes playlists .
Give it a go!
George Papakotsias