Below is my take on the TP as a modding platform, copy-n-pasted from another Circle thread I posted in. (I eval'd both the stock TP and my RWA-modded SB3, and the SB3 sounds slightly better, IMO).
I am more convinced that version 1.0 TP is a lousy price point to mod, as I'm sure Slim Devices and others will come out with $400-1000 varieties that are decent platforms, handle 24/96 (like the TP), etc.
Anyway...
"There are a couple schools of thought to the Slim Devices mods. One, held by Anthony and RAM and others, says that the Transporter is a better "platform" or foundation to begin modding services. It has better dacs and a more solid analog foundation. It was clearly built by SD to a different price point, and to address "audiophile needs" by including digital inputs, balanced connectors, etc. The TP modders will argue that it doesn't make sense to add $1k worth of mods to a $300 platform. The downside of this Transporter mod school of thought is that were now talking $2800+ for a version 1 product.
The other school, clearly led to date by Wayne at Boulder (and Vinnie at RWA for a short time) is that the Squeezebox is priced perfectly as a stock platform, and that many of the "mods" are frankly evolutionary and can be done without a real critical path; ie. buy better outboard power supplies when you have the cash. The internal mods are wholesale changes to obvious price-point ingredients and "no-brainers" when it comes to modding. The resultant product price is less than a stock TP and has proven to be its equal or better, sonically. It's footprint is great for home systems, and can also be used for secondary headphone/bedroom/office systems, especially if looked at with a lower-end linear ps upgrade.
Me, I've heard both, as per above, and although I'd venture to say a max'd out modded TP would sound great, I'm not sure I want to spend $3k+ on a version 1.0 product in such a growing competitive sub-industry as computer-as-source. Both schools make sense, neither invalidates the other. It's all about choices, and timing."