[Saintly]

You can connect the iPod to the home stereo buy several ways.
1) a cable from the head phone jack to an auxiliary input on your stereo
2) an fm transmitter from belkin or simular (can use this in the car too)
or 3) a cassette adapter if you have a cassette player

option 1 will give the best sound.
another option is to have some good speakers connected to your PC. I have some Logitech z-680 speakers and they are really good.

There may be other options but they are all I can think about at the moment.