Can I use volume buttons to control my IPOD controls?

Look into GlovePod for the volume buttons.

As for playing music when double-clicking the home button, use Activator and set that control.

 

Music Controls in Cydia is worth a look lots of cool features. BTW it is a paid app I think it's $2 can't remember.



Multitask while listening to your favorite music applications!

Music Controls adds backgrounding and system integration into many popular music applications, and gives you many ways to control your music:

* Task Controls (4.x)
* Popup controls (3.x)
* Lockscreen controls
* Headset controls
* Bluetooth controls (3.1+)
* Statusbar controls (3.x)
* Lockscreen swipe gestures
* Swipe gestures while the display is off

Music Controls includes a 5-day fully-functional free trial.

Music Controls has support for 38 programs:

* iPod
* AccuRadio
* Airband
* Bing Music
* CBS Radio
* dTunes
* finetune
* Flycast Select New!
* Grooveshark
* iFile
* iheartradio
* imeem
* iTunes Top 100
* iPeng
* iSub New!
* KKBOX
* Last.fm
* ooTunes
* OrbLive
* OrbMusic
* OurStage Radio
* Pandora
* PlugPlayer
* PwnPlayer Lite
* radio.com
* Remote
* Rhapsody
* RSSPlayer
* Simplify Music 2
* Sirius Canada
* Sirius/XM
* Slacker
* Spotify
* Stitcher
* Top 100s By Year
* Top 100s Music Mega Pack
* XBMC Music Streamer
* Yahoo! Music

A non-expiring demo is available for Pandora. However, only popup and simple lockscreen controls (plus volume button inversion) are available.
Developer Page
Twitter
Shrink
CalendarPro (Profiles)
Resupported
BluSelect
Cicero
Developer Page
CalendarPro (Profiles)
Resupported
Shrink

 

Just use Activator, it's free. No need to pay for anything.

I set it to turn music on by sliding the bottom left corner of the screen, and I change tracks with the volume buttons.

edit: I wondered what GlovePod was for. I'll give it a try.