Gonk, I thought the AppleTV has storage limitations and thus it creates issue of only being able to have part of a large Itunes lossless library available at any one time.
Also, what are your views on the differences (good and bad) between the AppleTV and the Squeezebox as suggested by NDSKURFER.
They now only offer the AppleTV with a 160GB hard drive - that adds up to a lot of storage space - but it can also stream directly from a computer running iTunes without having to store the files locally.
The Squeezebox is a good option for a music-only device. The original product was a dominant presence in the market for a long time. Logitech has changed the product line a lot recently (more than I had realized until just this moment, actually) and the old Squeezebox is apparently gone. The Duet is $400 (compared to $230 for the AppleTV). I don't know what the Touch costs. You could probably find a used Squeezebox (the old style) for less than an AppleTV.
EDIT: Also, what about the AppleTV's DAC? Is it good or would you want a better one for lossless audio feeding to a 990?
When you connect the optical output to the 990, the DAC is irrelevant. It's simply providing a digital output.
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