I use a sik imp (think it was about $45) which is for docking cradle ipods. This consists of a dongle which plugs into the docking port at the bottom and gives you a female 3.5mm jack and a female firewire connector. This is the line level output (ie not through the internal ipod amp) and the "kit" includes a car charger which goes into the firewire port (and also gives you lots of "buzz" when charging. Only use when you _have_ to charge it in the car). All the aux plug does is let you put sound in so you still need to use the ipod itself for control. Another similar option would be the sendstation pocketdock which is a touch more expensive
To allow the stereo to control the ipod you need a full adaptor such as the ice link, I haven't seen one for the LS yet though I haven't really looked either. They are available for the LR and went for around $300. Another alternative I've seen recently (though not yet released I believe) was a kit which provided a cradle/box with line out output, seperate click wheel and seperate screen. The idea with this was to put the cradle and ipod near the aux jack (in our case in the glovebox), mount the click wheel remotely (say down around the cupholders) and the small screen somewhere in your eyeline (eg on the dash near the A pillar). I saw this about 3 months ago and it was meant to be being released pre christmas (in the US at least) and for me I see it as the best solution as it allows you to control the ipod with minimal disruption to your driving
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