Apartment system iPod to headphones

I am now renting an apartment and rather than duplicate my home systems I will instead go just with headphones. I have half my music on a classic 120 G iPod and will buy another for the other half. (I want to travel with my music as well). My music is stored in Apple Lossless format on the iPod. I already know what I want for a headphone rig. I am willing to spend good money on a device to get the bits and a DAC to send analog to the headamp. I want the best method to extract the music from the iPod and get it to my headphone amp. How can I extract the exact bits from the iPod in a digital stream and preserve the fidelity? What have you tried that works for you? I will not have a computer, just the iPod that travels with me to the apartment several times a month. Thanks.