Ted wants to listen to his music via Airplay, but he doesn't like that it's compressed. Leo says yes, music streamed over Wi-Fi will be compressed. So it's best to keep it all wired as a result. Since Ted has such great speakers, he'll want to get a digital to analog converter to play the music through his computer. He should rip his CDs using Apple lossless or FLAC. FIIO is a good company for DACs.
Leo also says that Onkyo makes a great amp that does Digital to Audio conversion. Plug a USB key with the music into it and the receiver will convert it and play it through the stereo. 96K is good enough, but Joe Walsh records in 44:1/24.
iTunes won't play the higher resolution music, though. Leo suggests Vox in the Mac App Store.