Sorry my mistake, you didn't mention you were after a new HU so assumed you were after a HD based DAP to plug into your car ie line out from DAP to aux/line in on your cars HU.
As a side note the ipod does have one of the best quality lineouts going.
I dont think that there are any major brand headunits that support FLAC format - WAV, MP3 and WMA are about it at the moment.
Alternatively if you have a compatible headunit then you can go for the Phatbox which does do FLAC. http://www.phatnoise.com/products/digitalmediaplayers/index.php
Doesnt appear to be available in the UK though other than via Ebay auctions.
Or there is the E-mpeg (IIRC) which should play allsorts as its opensource and linux based, don't know if they still make them however.
Phatbox is around 200 notes on ebay, but I am not entirely sure what interface it uses or what headunits are supported, all thats listed appears to be the car manufacturers and without knowing what brand of headunits (or indeed if its proprietry to them) they use I can't really offer you any informed info mate.
I think that the Kenwood music keg (also listed on Phatbox website) is essentially the same unit though, which will work with a Kenwood headunit with CD changer control so there's plenty to pick from.
E-mpeg is a standalone unit and replaces the headunit in car and just plugs in where your current stereo is.
Personally I wouldn't go for either though. I use a Alpine 9855R with a Sony HD5 plugged into it which gives me best of both worlds - excellent quality headunit and oodles of MP3's/Atrac3's for a journey to work
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