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The bottom line is that the only way to truly test out the loss caused by the iPod's D/A converter is for someone to actually perform the test I described in the first post of this thread. We can all hypothesize, but until someone actually compares an MP3 on a CD at a high bitrate to the identical MP3 at the same bitrate on the iPod, it's tough to say for sure.
My 330xi isn't here yet, but when it is I will be happy to try the test myself and post here.
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