i'm interested in this too. the output is supposed to be bit-perfect...
i'm thinking of using
external hard drive -> itunes in my ibook -> airport express -> M-Audio CO2 to convert the optical signal to coax (or maybe something cheaper and simpler) -> Scott Nixon TubeDAC
... but i'm afraid that this combination might give me a sound that is inferior than the one i'm getting from my slightly modified (power cable) Sony S7000 that i use as transport. i've never used an airport express nor M-Audio CO2.
I'm also considering going the SB3 route, but i'm so spoiled with Itunes that it's difficult to switch... and i'm afraid of using the wired option for the SB3 thinking that this may bring the noise of the laptop (and external HD - both of which are connected to a different circuit breaker than the stereo) into stereo system. I don't have a router - i pitched in with my neighbors for the internet connection, so i don't think i can go wireless with SB3 while being able to use internet.
what do you think?