I just wanted to let everyone know that I have found a product for us Iphone geeks. Here is what I purchased:

http://cgi.ebay.com/ws/eBayISAPI.dll...MEWN:IT&ih=024

My total cost with shipping was $8.98

It is a connector for audio out from the dock connection on the Iphone. I am using this with my 2G iphone in order to play MP3s or online radio stations through my MINI's hifi system. I have not been able to verify that this also works with the 3G yet but I should have that in a week or two.

The advantage of this is that I don't have to use a headphone adapter (due to Apple's poor design on the original Iphone) and then a male to male headphone wire to hook up my Iphone in the car. When using the headphone port the signal is going through the internal amplifier of the Iphone and can cause distortion. Connecting through the dock connection allows you to use the Iphones level line out which offers better quality.

Background: Many add-ons for the Ipods that use the dock connector do NOT work with the Iphone dock connector. I have a similar wire that I have used with my Ipod Video 60GB in the past and it does not work with the Iphone.

 

Yup, I got an iPod Dock Connector to 3.5mm Cable from Amazon for $9.64, but I see they are now charging $21.63 for it.

The downside is that it wont charge the iPhone. I'm now using an Apple iPhone 3G Dock, a Griffin PowerJolt Car Charger for iPhone or iPod, and a 3.5mm to 3.5mm cable. The dock splits the audio out from the dock connector on the phone to a 3.5mm outlet.

 

I found that the Griffin AutoPilot works pretty good in our cars. It's not too far of a reach to change songs. Plus you can change the Line out level if needed. My only issue is that I've since added a PNP Sirius, 2 devices and 1 Aux port don't work well. I had to build a small A/B switch to change from iPod/iPhone to Sirius.

 

I wanted to charge mine, and the Belkin I had for my iPod won't charge the iPhone (I just put two up on eBay). So the Griffin wasn't going to work for me.

So, I went ahead and got the Kensington LiquidAux. Not too bad, but it's not a clean fit in the MINI's notorious cigarette lighter, so I'm going to shim it with some electrical tape or the soft side of velcro so it won't wobble.

Others have used a splitter (cabled) as those apparently fit snugly, and I could do that, but it's not as clean-looking.

 

My Griffin charges my iPhone 3G just fine...

 

Yeah I also use the autopilot by griffin. I dont think you can beat it for $50!!
I hid the cable under the center console and ran it through to the e-brake handle. Works with my 1st gen iphone and my ipod... Looks neat & tidy!!
Here's some pics of what i did:
Attachment 36801

Attachment 36802

 

I tried a few things and ended up with an Autopilot too. The cord is long enough that I can put my iPod in the glove box. I can reach the control just fine to change songs. The line level switch made a huge difference in the sound over other products especial the LiquidAux, which was an interesting idea but sounded worse than the aux jack alone.

 

FWIW, I use my older Nano in the floor net, attached to the ipod USB that comes down from the space in front of the shifter, which is integrated into the audio controls (Convenience package, I believe). For my 3G iPhone, I have it bluetooth synched and simply plugged in to the lighter/charger and sitting, cable-up, in my cup holder. I had considered the arm-rest cartridge, not available for 3G yet, but don't see an advantage anymore, since I already have the two ipods. When my phone rings over the speakers, my audiobook stops, and there's my conversation, hands free. Then the story resumes upon disconnecting the call; love it!

 

This is what I use. I bought the Kuda mount that mounts on the center stack (link). I have the ProClip Move Clip System (link).And an old Belkin leather iPod holster, these are OOP but buy.com has some left for like $15.00 (link). Finally I use the Kensington Liquid Aux with steering wheel mounted remote (link).

What is nice about this solution, while expensive-Kuda $54.00, Move Clip $15.00, Belkin $15.00, Kensington $70.00-it is an awsome solution. It lets me use my iPod 60GB for long trips. I can use my iPhone with a silcone case, and I can use an iPhone 3G. Plus it charges and the steering wheel remote is really convenient.

Anyway that's my $0.02