What kind of iPod integration?

A hard-wired solution provides the best sound clarity and it interfaces with the display on your your stereo head unit to show track #, song title, and artist information. You can use the controls on your stereo head unit or your steering wheel to contol navigation through your titles, albums, artists, and playlists.

The best of the hard-wired solutions is the Dice brand which plugs into the CD Changer connection. If you look in any of the car enthusiasts forums (BMW, Mercedes, Audi, Mustang, Corvette, etc.), you'll see that the Dice interface is probably the most popular at the present.

Here's the link:
http://www.diceelectronics.com/

That Dice thing is WAYYYYYYYYY to expensive. I was thinking $50 at most.

You better stick with the FM transmitter, or go with the Harmon Kardon Drive + Play (original). It's currently on buy.com for $65 and gives you multiple options for connecting.

What's a good FM transmitter to buy?

No matter which one you buy, if you live in an urban area, you'll more than likely get interference. I just received my drive+play today and it sounded horrible using the FM transmitter. Now I either have to return it or figure out some way to connect it directly to my radio (it doesn't have any RCA input jacks).

Look on crutchfield.com and enter your vehicle information. What I would do then is read the customer reviews for each item recommended for your vehicle.