I have a Honda Element that has an auxiliary jack designed for MP3 players. My set up is that my iPod is connected to a Belkin Auto Kit (
http://www.ilounge.com/index.php/ipod/review/belkin-auto-kit-ipod/) using that, powers the iPod and also passes the sound to the auxiliary jack instead of using the headphone jack.
I was hoping that it worked with my iPhone and it does but with some quirks. Once plugged in you get that message that this accessory doesn't work for the iPhone and asks you to switch to airplane mode. Hit "no." Then on the iPod screen make sure that the volume control is not mute. The sound is then fed to my speakers. If I still don't hear any sound or if it's playing through the iPhone speakers, I simply disconnect the cable and reconnect it again (again making sure that the iPhone volume gauge is not all the way to the left).
So the Belkin works, just need to live with a little quirk!