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Can the ipod touch connect wirelessly to your home network
i've got a wadia so thats not a problem - i know you can use it to control i tunes as a remote with th squeezbox but just wondered if it could play them through its internal dac or more importantly output the raw digital information
It can, yes. I use the free 'Airfoil Speakers Touch' app because I already have Airfoil but I think also that 'Simplify Media' does the same sort of thing without the airfoil client, so is much cheaper, but I haven't tried it. Though for £3.49 it's probably worth a punt for you...
EDIT - though having just started streaming Spotify to my iPod, getting a lot of breakup (my wireless network is being trunky lately)