I use a black Belkin Auto Kit charger with an integrated 3.5mm jack built right in and a $5 1ft Radio Shack 3.5mm cable. One side of the cable goes into the Belkin and the other side goes into the factory AUX input. Most probably never notice it, but on the passsenger side there is a pass through from the big center pocket to the usesless slot near your knees. My iPod is always within an arm's length in one of the cup holder slots, and I can control everything without having to rely on the stock radio screen. I considered getting a USA Spec box that displays text on the factory radio, but my solution works just fine (well almost...see below).
Other than the usual ground loop problem (which will be solved when my PAC SNI-1/3.5 Noise Filter arrives this week...here's the link for one :
http://www.crutchfield.com/S-Tm4FGZ3...AC+Ground+Loop), my Belkin charges the iPod and plays the music through the bottom digital port, not the headphone jack. Simple yet effective.