Here is my preffered Ipod in car solution. I tried using USA SPEC ipod interface that connect to the cd changer connection but the sound quality is awful, it might be the unit is defective or its just sucks. So i decided to go with the aux input and very happy about the sound quality.
I chose Kuda mounting base and holder with tilting function (very expensive at $80 total but it s made in Germany) . I really like this setup since the ipod its close to the steering wheel which makes it easy to skip songs, change playlist, etc. I can also look at the ipod without taking my eyes off the road too much.
I also add the pocketdock, which give direct, unamplified signal from the ipod for highest sound quality. It also allow me to charge the ipod while playing.
In case you are wondering, the long flexy thing is a led

flashlight. I use it to illuminate the ipod during night time. The ipod screen turn off if you don't use the ipod, so i can't look at the artist/song information when driving at night unless i keep touching the ipod. The led flashlight is very handy at night, it allow me to look at the ipod screen as if the backlight is on. VERY COOL!

Check out the pictures on the very bottom.
Any thoughts?