iPods don't compress anything, all they do is play stuff.
I don't even remember what the default iTunes CD import setting is, but I think it's 128kbps AAC (AAC is just a file wrapper for MP4), which is approximately equivalent in quality to 192kbps MP3, which, yeah, is not great quality but not bad. You have full control over that though - you can set iTunes to use any compression algorithm you want. For rock, I suggest using MP3 format (it'll play on more devices) and encoding at at least 192kbps variable, and always select "highest" quality (that's a dumb Apple setting). Use 320kbps if you have space. (And if you're using variable bit rates, it should only use as much space as necessary to achieve that quality.) MP3s you buy from Amazon or eMusic are more like 320 kbps variable. For most classical I just use Apple lossless, though that'll only play on Apple platform.
ANYWAY, my point is -- the SAME music file is going to sound basically the same whether you play it off an SD card through your RNS510 or off an iPod/MDI through your RNS510. That storage media is not what's affecting the sound.