I use my iPod for the same purpose, i found the sound quality isnt too bad, especially if you rip at a high bit rate or apple lossless. a Digital connection is the best way to go. I used to just use a simple Y cable (headphone on one end RCA cables on other end) that sounded ok and was fine for parties and whatnot, but i found using a dock or my xbox 360 gave a much better sound, very noticeable. Weather or not it can compete with other products out there i dont know, ill i have used is my ipod or CD's through my Xbox, and i cant tell the difference. Hope i helped, oh yeah and if you buy a dock from a store like Best Buy or Target or really any store that has a decent return policy you can always try it out and if you dont like it return it within their policy. Thats what i always do.
