Better than Ipod

Hi <?xml:namespace prefix = o ns = "urn:schemas-microsoft-comfficeffice" />

I am not happy with the sound from my IPod classic when
played through my stereo. I rip to my ITunes in lossless on my PC and then
transfer to the IPod.  I want something
to do the same function (store and play music into my HiFi) that will play all
file formats, I don’t need portable and am not after a streamer

I am looking at a Olive 03HD (This will top the budget) but can’t
test one locally and am concerned I will spend the $ with little to no improvement
in sound detail or quality.

The question is does anybody make a

1.      
Good sounding (Sound quality the main objective)

2.      
One box (Hard drive and player)

3.      
Plays all file types (Flac, MP3, WAV)

4.      
Simple to use

I have a Yamaha A-S500 amp, Yamaha CD-300 and two sets of
B&W 685s (One pair in the lounge the other in the dining room) The IPod
Classic is played through a Yamaha YID-W10 dock.

Is there a better music server available or has any one
compared the Oliver 03HD to IPod?

Note: I like the look of the naim HDX but surely there must
be similar kit around the $1600.00 Aus. Mark

Thanks in advance for any help