I would think you are better off playing the ipod through the car radio. You can get a adapter to hock-up the I-Pod to the radio. If it has a cassette player you could use this
Amazon.com: Walkman Car Connecting Pack for MD Walkman and CD Walkman (Model# CPA-9C): Electronics. I realize it won't drown out the exhaust noise but still seems like a better idea.
You can rip your cd's on your computer using I Tunes or other software. Other software will give you better quality (sampling rate) but I Tunes is quick and easy and comes with the I Pod. I might also be tempted to get a I Pad instead of a I Pod.