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Not sure about the sub question - I would check with some local car audio dealers. As far as the DAC question from "23"... You are on the right track - it is indeed a question of DACs. iPods/iPhones have a built-in DAC which is of rather poor quality and when you are running files from that location, they are likely being processed twice - once by the inferior DAC in the iPhone and possibly again by the car audio system. Some home audio companies (Wadia comes to mind) license technology from Apple to work around this issue... Keep the "important" music on the car hard drive system and use an uncompressed format for best sound quality (not MP3).
Cheers...
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