CES: Wadia Digital will introduce what they claim is the world’s first all-digital iPod dock.

According to Wadia, this means it can offer CD-quality from full-resolution file formats.The iTransport (SRP: $349) turns your iPod into a high-end media server by providing a bit-perfect digital audio output to an audio/video system, bypassing the player’s internal D/A conversion and output stage. The iTransport is compatible with all currently available (Q1 2008) iPod players, as well as iPhone and iPod Touch models.

“Until now, there has been no real bridge between the convenience of an iPod and the high-end audio listening experience,” commented John W. Schaffer, President, Wadia Digital. “The goal of making the player a true high-end media server has been hampered by the need to send the digital signal through a portable player’s D/A converter rather than that of a high performance audio system.

“We designed iTransport to bypass the player’s converter and output stage altogether. When used with an iTransport, the iPod becomes a digital music source equal to some of the finest sounding transports in the high-end audio market.”