I've just bought a Belkin transmitter thingie for my car (from Halfords) and it's great.
I've got a 4g Nano and it's easypeasy, and about right for me - we also have a jack to plug our iPods into our midi system
Dh has ripped a lot of his CD's and laoded them onto his iPod but I tend to listen to more current stuff so I'm not buying anymore CD's now, just downloading.