Troll any forum relating to the iPod and it is a universally argued fact that the iPod does not offer a digital output (S/P-DIF). Well, that’s the general conception up until I read about this:

i-Deck

The copy indicates that it processes the digital output from the iPod all the way through the volume control until it hits the class D amplifiers at the speakers. Seems fishy to me, considering the number of dissected iPods I’ve seen on the web. I’m going to have to call bullshit until I get confirmation from the company.

Copy in question: i-deck utilizes the latest Digital Amplifier technology with Digital IC’s and its own audiophile-quality Digital-to-Analog Converters (DACs). This process carries digital files directly to the i-deck’s volume control before converting to analog, resulting in virtually noise-free playback. The i-deck simply bypasses the iPod’s built-in DACs, and uses its own superior DACs to produce enhanced audio output. By streamlining the conversion process, the i-deck reduces noise distortion that occurs with other iPod companion players. The results are clear to hear, with easily differentiated performance levels for MP3 and AAC compression rates and with Apple lossless audio files.

Stay tuned.