I happened to have an A/V Cable at home, which is 3-banded 3.5mm single pin at one end, and Yellow/White/Red RCA connection at the other end. If you have one of these, you can easily connect your iPod to your Amp/Receiver/Mini Systems to play music, and to your TV/Display unit to play Video. Your Amp/Receiver should have a Line-In option (or even dedicated RCA ports for CD/MD/Tape/etc). And your TV should have the Y/W/R RCA ports. This is cheapest option, and my Amp & TV could play just fine.
The only hitch is, Apple seems to have swapped the Y/W/R pins rather non-standard. Refer
http://www.oreillynet.com/pub/a/mac/2005/11/18/video-ipod.html to know which should go where.
Cheers!