Confused With Options To Obtain BestQuality iTunes


I have been reading a lot these days and still confused on the plethora of options available in hooking up a computer based digital system and the pros and cons to each and every selection. I am quite new in this so please bear with me.

I have friends who stream wireless music(Itunes) via an Apple Airport Express that supported this idea and do know many folks are using this setup in their homes. Others who are into Logitech stuff advocated the Squeezebox Classic and Touch. However, another group who uses top-flight gears in their systems(upper range MBL and Revels) advised that wireless degrades sound quality, and the best option is to hook it all up with wires.

Suggested options to play Itunes in WAV or AIFF format are as follows.

1) iTunes in 1TB/2TB External Hard Drive => Mac Mini/Macbook => DAC (iPad to control music selection)

2) iTunes in 1TB/2TB External Hard Drive => Logitech Squeezebox Classic/Touch => DAC (iPad to control music selection)

3) iTunes in 1TB/2TB External Hard Drive => PC => Apple Airport Express => wireless => DAC (iPad to control music selection)

4) iTunes in 1TB/2TB External Hard Drives => wireless => Apple TV => DAC

Out of the four options above, is it a general consensus that option 1 will yield the best sound reproduction from iTunes followed by option 2? Will options 3 and 4 come close to options 1 and 2? Are there any other alternatives to do all this?

Basically my priority is to use an iPad to control playback from iTunes stored in 1TB/2TB external hard drives WITHOUT using a Mac/PC. Apple Airport Express and Apple TV were said to degrade sound quality. What other cost-efficient options do I have?

An advice would be most appreciated.
ryder
What I don't get, though, is how to access both programs through the SqTouch. The screen there just says owner's library (or something like that). I actually have had both programs running and one of them is sending music to the Touch, but I'm not sure which one the SQserver has iTunes selected so I'm assuming its getting its feed from iTunes. How do I get the SQserver to send the AyreWave to the Touch, though? As you can tell, I've got alot to learn about this stuff. But I'm getting there, thanks to your advice and the other folks on this forum.
Can't help with Squeeze stuff unfortunately, I don't have it. At the worst, I suppose one could backup, then trash either AyreWave or iTunes, listen to a suite of test pieces ( with a notepad handy ), then trash the other, reinstall the first and repeat. This would be the brute force option.
The Squeezebox Touch will only work with the Squeezebox server software. It will not work with any other software running on your computer. The SBS (squeezebox server) software accesses the music files in the directory you point it at, converts them to FLAC, and sends them to the Squeezebox. It can't play sounds from your computer, it can't run software from your computer, it can't access other software on your computer. Basically, it's a dumb device that just streams music files from your computer to the Squeezebox.
Since we are talking iTunes here, I am curious why there has been no mention of the Wadia 170i combined with say the Monarchy DIP to a good quality DAC. It would be great to get an informed opinion on why this would not be as good of an alternative compared the Squeezebox Touch, keeping in mind that iTunes is not FLAC capable.
Hello all, apologies for asking this here but it seems most of the people who know have participated on this thread.

I have set up an Imac server, using time capsule for backup and wireless out. I have 3 appletv in different locations and all can play out of the same library in the Imac at the same time whichever song is chosen. So I can run three different tunes at the same time.

This brings me to my question, I like the sound of Pure Music when I demoed it on the computer, but how do I get the same sound out in my appletv's. I guess I am not quite sure what the apple tv is doing to downstream the sound. I would appreciate a note if anyone knows, thanks, Gordon.