Everyone I know who has an iPod struggles with is car connectivity. There's lots of very imperfect solutions out there, FM broadcasters, cassette tape adapters, but none of them work that well. Someone's finally come up with a solution, the ice>Link:iPod. From their web page:

ice>Link:iPod is the ultimate car kit for your Apple iPod. iPod audio is routed through your head unit's CD changer port and keypresses including FF & RW are passed from your head unit (and steering wheel controls in suitably-equipped vehicles) to your iPod resulting in safe control of your iPod while driving.

Combine it with a nice holder for the iPod and you'd have a great solution for listening in the car.