HI guys,
New IS250 owner, 2007 black.
I just wanted to share with you guys my iphone set up (will work the same with ipod)
I bought the kensington liquidAUX. (link to apple store page here)
The power part fits perfectly in the armrest, and can still close and operate perfectly. the aux jack is right beside so there's no problems. So I just leave those plugged in and I have the dock end (part that goes into the phone) sticking out of the armrest, when closed. Yes it still closes perfectly, if you keep the cable to the corners of the latch for the armrest. I will post pics later.
Also, I bought a ground loop isolator off of ebay for about 5 bucks to get rid of the aux+power stereo whine.
The best thing about this product, and why I say this is the best set up, is that it comes with a wireless controller that fits on the steering wheel. This allows me to plug the iphone in when I get in, and then I just use the car controls for volume, and right below that is my controls for the iphone operation.
This really is the perfect solution. It's more expensive than other aux cable/power setups. but with the remote, and the power adaptor being the right size to fit the armrest. I really think this is incomprable.
again, will post pics later.