While it is true that you can't have both XM and the IPod interface, you CAN have XM and an auxilliary jack. I had the Vaistech SLR XM tuner installed, hooks right up to the existing amp, and had them run the aux wire to the glovebox. SAT 3 is set to AUX and the jack can be used in the headset port of any IPod, Iphon, MP3 player, laptop, etc. and play the audio over the car speakers through the existing radio. The only drawback is that you have to control the IPod from the IPod as opposed to controlling it on the navigation screen if you had the IPod interface. In my mind, a very minor inconvenience at best.....
Thanks SOOOO much for the info. That sounds like exactly what I am looking for! I don't mind controlling the IPod from the IPod. I just want to eliminate the static and interference that I am dealing with using the FM transmitter. Is there a patricular model number for the part that you had installed? Do I go straight to the Vaistech website to get it?
Thanks again! :D