I would like to wirelessly connect my laptop to my stereo. How do I do
this so that the sound quality is good? Are there any really good
products out there?

I run my stereo off of my desktop computer.  I then use windows
"Remote Desktop" to control remote control the desktop computer from
my laptop over my wireless network.  You must have XP Pro on the
desktop or use a third party remote control software like VNC or PC
Anywhere.  It's not as convenient as what you are looking for, but it
works for me.

This site has a couple of such devices:
http://www.ramelectronics.net/html/howto-pc-audio.html

Nah, what you want is a 'streamer'. This little box of tricks collates
all your tunes and then plays them through your stereo independently
with its own remote control and everything. some have cd players built
in

the sony one looks alright, Sony NAS-CZ1 Ethernet Client Micro System
 but the one ive had my eye on is the slim devices number. lovely
www.slimdevices.com

hope thats of some help.

The previous poster mentioned Slim Devices, and they make an excellent
product.  They offer a stand alone solution that cuts your laptop out
of the equation.  With the Squeeze Box you can stream music off your
computer direct to your stereo through the Squeeze Box, which is an
auxilliary device that you'd add to your audio setup.

Another great product is Apple's Airport Express.  It's a fair amount
cheaper than the Squeeze Box and works differently.  You'd need your
laptop to run iTunes, and once you begin playing a song you can tell
it to play remotely via the Airport speakers.

Two different solutions, both are good, it just depends on your setup.