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Otoh, the ipod will have stupidly high impedance unless it is a Touch - or maybe a Nano?
In that case wouldn't a portable amp designed to take an input from the iPod lineout be a more convenient solution, instead of bypassing the DAC too?
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I don't have any Ipod, i'm searching for a player to use my FiiO portably.
Since you don't have an iPod anyway, then you can skip that option altogether and consider a few others, but do check if your Fiio works with the USB Audio on either one of these:
1) iPad with CCK (check if the newer Lightning units work with your Fiio) - it works a little differently, which is closer to a notebook computer, as long as you have a CCK and the DAC doesn't need power off the USB bus.
2) Latest Android tablets that work with USB Audio, plus a USB OTG cable (note : not all running Jellybean may work) - Better choice since you can buy the cheapest one that can do USB audio and buy two microSDHCs instead of paying Apple a lot more money for a 64gb tablet. Trust me, drag and drop over dealing with iTunes can be a lot of fun. The only reasons why I have an iPad2 and not a Galaxy Tab is a) i got it as a gift from my mother who thought I was just being incredibly cheap being the only one who doesn't have one, b) it looks neater propped up on the original Apple dock/stand and the the CCK is connected to the port on the back of the dock, and c) because of that I got my magazine subscriptions off iTunes. I'm not letting go of my digital MAD at this point.
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Then there's the redundant option :
3) Sell your E07, buy E17, then buy the Fiio X3 to stream the audio to the E17 via SPDIF.
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Or the not redundant option :
4) Forget using the E07 portably and just get the X3, since it's basically the E17 with a player (screen, controls, card reader)
Why X3 instead of an iPod? Lots of arguments on the Classic's HDD vs microSDHC on the other (locked) threads, but just to sum up what I remember: Those who want HDD prefer that when you buy a player, whether its a $200-ish X3 or a $900 HiFiMan, the manufacturer should include the HDD for the price; also at least one person was concerned about losing a microSDHC while swapping them out in the subway. If you're not likely to feel that whatever music in one 32gb or 64gb isn't gonna do it for you for a short ride in a crowded train full of people who just want to get to or from work and will not move tehir tired legs while you look for a tiny memory card (for all they know you might just be a perv looking up their skirts), then several microSDHC's might be for you instead of a high-cap HDD that wears down mechanically since it has moving parts.