I have the first generation Transpod for my 1G iPod. (I use the new iPod for day to day usage) It works very well for a FM transmission device, doesn't require batteries or drains the iPod.
The holder keeps the iPod charged, for those who don't have a line in or a cassette player in their cars it does the job well.
On long trips it's a must, you enter in different FM transmission areas and have to change the frequency. Which is easy unless you get into a soaked area in big cities.
The box that mine came in had different arrangements to suit your particular needs. Dash mount, cig mount, center mount etc.
If your getting a direct line in then all the Transpod does for you is keep it charged and provide a fancy holder.
You can use the Belkin iPod car charger and get/make a iPod holder and mount it on your dash as a cheaper alternative, be sure to pad it well, snug to fit.
If I remember the Transpod can be mounted on the dash as well using sticky pad.
You want something that will allow quick and easy removal of the iPod so you can place it in the glove, out of sight if need be or take it with you.
hope that helps