I can answer this one:
1) Audio signal connection: My GM Delco stereo has a port on the back for connecting a 12-disk CD changer. There is a $100 or so adapter you can get to plug into that port that gives you two RCA input jacks, for the left and right audio channels. Therefore whatever you would have pressed to select the CD-changer as the stereo source now instead selects these RCA jacks.
Mine is from Precision Interface Electronics ( http://www.pie.net ); BitBlitz makes these as well, but car stereo pros typically think BitBlitz has crappy quality.
2) Power connection: Belkin and other manufacturers make a car adaptor for the iPod that plugs into the cigarette lighter.
On the 3rd Gen iPod, the iPod end of the cable plugs into the general-purpose port on the bottom of the iPod. So in addition to power, it also gives you a line-level mini headphone port with the audio signals at the cigarette lighter plug base.
Just connect the mini headphone plug at the cigarette lighter base to the RCA audio jacks described above. Now you have both power and signal connection to the car stereo system.
3) Mechanical mounting to car: I made a "car dock" by:
So now I can just drop my iPod into the car dock to automatically make power and signal connections, and take it out when I want to update the iPod's songs, calender and contact database, or when don't want the iPod attracting thieves. With the ashtray cover closed, the car interior looks unmodified.
I hope that answer your question. I wish I could use my steering wheel controls to switch songs or playlists, and BitBlitz is making noises they'll offer this soon. But with the iPod solidly mounted, swiching songs is easy.
Wasn't Volkswagon running adds that offered a free iPod with a new Beetle? It appeared in those ads that there was already some kind of dock made for the car, although I suppose it is possible that it could have been a special kind of thing.