I must be missing something. This all seems like an awful lot of money and trouble to end up with something that a good music server could do for a lot less money.
Just for example, what can a Wadia plus iPod do that, say, a Cambridge 740H server (250GB, MP3, FLAC, WAV, 3x Wolfsen DAC's, WiFi etc) can't?
Sure the iPod is portable, but not when you add the Wadia dock, amp & speakers and so on.