The factory stereo on the 2000-2001 Camry has AM/FM cassette deck and CD player.
I used several FM modulator style iPod adaptors, but they never sound that good and I would get interference in the reception at times also...
I actually found that a Sony Cassette adaptor works very well. There's no interference and the sound quality is actually pretty good. Cheap too. You can pick one of these up at most discount stores.
If you want to charge your iPod, get one of a USB to Cig lighter adaptor.

Nothing fancy, but they work well.