So far I'm finding that going using the analog outs of the Touch (Cardas Golden Ref interconnects into Cary SLI-80 into AU-24 into Silverline SR-17.5's), the following all sound very similar:
a. wireless out of my Mac (Leopard, not Snow Leopard) with cds ripped at 256,
b. wireless out of my Mac, with cds ripped Apple Lossless, and
c. SDHC card containing the 256 bit rate rips.
They all sound VERY musical, not fatiguing at all, with sufficient and extension to be very enjoyable. They are less saturated and less detailed and less extended than the sound out of my cd player (Cary 308T).
That said, it is EXTREMELY enjoyable. Somehow the convenience of flipping from album to album instantly, then jumping to internet radio - classical music out of France and Eastern Europe, .... there is HUGE pleasure in this.
I am increasingly curious to try a DAC with the Touch. Will probably happen early this coming week with a Bryston loaner from a good friend.
(DAN, the entire high end audio community of the planet earth is sitting on the edge of their seat waiting for you to lend me the Bryston DAC! ;-)
Art