Hello I am planning on replacing my ipod touch which i had a PURE I-20 Dock/Dac i used. I want to purchase a 32 gig Nexus 7 but could i use say a Cambridge Audio Dac Magic to connect it to my stereo amp for good sound?
No. At least not unless there's an app that turns the mini USB socket into a digital out, and there's not as far as I know.
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Android 4.1 supports USB audio out - so yes you can - sort of ....
To get it work at the moment you have to root your Nexus.
This will probably be added to Android fully shortly.
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thanks for the reply it looks likes i might be better just getting a netbook or a cheap laptop to connect to a dac?
You could use a Bluetooth DAC.
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