For those not ready for a Dice, but wanting more than some loose cables, here is a decent solution that has worked for me.
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This is a Tuneflex Aux 2.0 from Griffin Technology. I got it at Amazon for just over $30.

The bottom of the stalk slides into a cigarette lighter, the stalk itself is flexible and holds its shape, and there is a supplied variety of adapters for various iPod models that snap to the top. The bottom plug on the iPod slides onto a plug on the Tuneflex. This both charges the iPod and outputs the music.

There is an included mini jack that attaches to the bottom of the Tuneflex and plugs into the Aux plug (that you have to install in the X, not hard).

Note that the 2.0 version is the latest and improved. It has a sliding output control that matches the output of the iPod to the volume of the other sources like the nav voice, fm and cd modes. It works like gain on an amp, too, so you get the best balance of things.

Note my photo shows the original iPhone. It will attach via one of the adapters, but just barely. Apple, always controlling, has not yet certified the Tuneflex, so they can't, or didn't, include an actual iPhone adapter!

When you connect, a dialogue appears asking if you want to to to the inactive airplane mode. Just dismiss that little irritation and all works well. I doubt that the 3G phone would work, but I am not sure about that.

Some reviewers complain that the Tuneflex is not sturdy and moves around. Actually, it is the lighter socket itself that is pretty loose, as most of them are. Still, it holds its position ok and you could go in and tighten things up.

It is pretty sanitary, as we used to say, with only the one wire. Note where the Aux is located. There are good articles on doing this here on the forum.

For those that are just getting started in iPod integration please note that you do not want an fm transmitter! One of the things I would ban if "elected" Grand Beloved Leader for Life.

The sound through the bottom plug is better than merely running a jack from the headphone outlet. The Aux shows up in Modes and integrates perfectly with the steering wheel volume control, bluetooth and all the other modes and Nav. You still keep your cd changer option.

The Dice and similar units are more integrated, of course, and give more control over your iPod. This is a cheaper and more transferable alternative that might work for you.

Hope this is informative and I'll answer any questions you may have.