True, good phones will help, but if the source of the sound (not the file) is lacking, I don't think you'll maximise the capability of those cans. Sony, for example, is known for it's sound capabilities, as is Creative. Sure, you can have awful files being sent through a Sony or Creative player and into a set of Shure or Etys and the sound (subjectively) will be awful, but I guess the point I was trying to make (unsuccessfully now that I've re-read my post!) is that excellent equipment + excellent sound file + excellent phones/cans = excellent sound (again, subjectively). In my opinion, the Ipod just doesn't fit into that equation as 'excellent equipment' in terms of sound quality. I will, however, freely admit that I didn't try lossless on my wife's mini - i tried 192 (and higher) AAC and mp3. I found that LP2 ATRAC3 from Sony (recorded optically direct from CD) was superior. But, to each his own - these are my opinions only. We all have different ears, and what really matters is what sounds good to us!