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I've been considering how to eliminate the need for CD use in my home theater and get access to my mp3s, as well. Originally, I thought about using an older pc I had with a new chaintech av-710 sound card (can do bit-perfect digital output via asio plugin), but then I found some of the wireless mp3 streaming devices that were about $50 around the net. I purchased a Rockford Fosgate Omnifi and I've been very happy. It doesn't have a digital output, but like others have said, that's not really necessary with mp3. It also has a nice display on it that is pretty readable from a distance and from an angle, and it can be operated without a remote (has controls on the device). Definitely worth a look. I can post more, but I'm getting wordy already.
Matt
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