Get an iMic from Griffin. Plug the output from the iMic into the aux input on your stereo. Run a USB cable from your Mac to the iMic and set the audio output from the Mac to the iMic instead of the default.
As an alternative to the latter, use a utility such as Detour (free) to set just the output from iTunes to the iMic, leaving everything else to go to the default audio output. This way you won't get system sounds going to your stereo. This is what I've done.
The only cost for this is the iMic (not horribly expensive) and the USB cable. The max length of a USB cable is meant to be 5m but I use a 10m one (well, 2x5m) which works just fine. If you need longer than 5m and a longer cable doesn't work for you then you'll also need a USB repeater (in the UK Maplin stock them).
If you have a really good stereo don't expect CD quality sound from the 128kbps AAC files. If you rip songs from CDs as 160kbps or 192kbps AAC the quality is somewhere between a good FM tuner and a CD. 128kbps AAC is, in my opinion, about the same as a good FM tuner with a decent antenna. Radio Paradise's new(-ish) 192kbps MP3 stream is better than FM.
An added bonus is that you can also use the iMic to record from your stereo if you have the right software.
PowerMac dual processor G5 2.3GHz Mac OS X (10.4.3) 1Gb RAM
PowerMac dual processor G5 2.3GHz Mac OS X (10.4.6) 1Gb RAM
PowerMac dual processor G5 2.3GHz Mac OS X (10.4.3) 1Gb RAM