Well it depends on what you want to achieve - you may find it a bit more versatile to feed the contents of your PC to a DAC instead of the iPod, since on the whole they *do* have digital outs (which is what you need to feed a DAC), or you can get USB DACs which just plug in a USB socket of your PC, and from there you can plug into your stereo.
Couple of quesitons first - what's your current setup, amp and speakers wise, and what's your computer setup - ie laptop, desktop, old, new, wireless network yes/no etc?
And lastly, is it an iPod Touch (there's a reason for asking this)?