You can skip this entire process if you just want to dangle an inline connector somewhere.

Materials List
1. Soldering Iron
2. Solder
3. 1/8 stereo (3-connector) phone jack
4. RCA stereo patch cable
5. Electrical tape

For #3 I opted for a Radio Shack panel-mount 3-connector stereo jack. It was similar to this item, but was not enclosed in a case. It came in a two-pack for under $5. Radio Shack also has all the other items, but I didn’t need them. You will probably want to ensure that the jack you buy comes with a finishing nut to secure it into place.

For an example of #3 you can look up item #274-246 at radio shack

Instructions:
I had a spare long stereo RCA patch cable, so I cut into two equal lengths. When you strip the bare ends, it is important to note that the interior copper provides the signal. Simply strip the wire, leaving a long exposed piece for the exterior copper, and a shorter exposed piece for the center. You may twist both right and left exterior copper strands together. Solder the larger and larger exterior strands to the top point (labeled #1 on my device. Left signal should connect to the TIP, and Right signal should be soldered to the RING. If you didn’t already know this, or don’t know what tip & ring are, perhaps I should call into question your ability to solder. Tip, obviously, is the lower connection to be made, ring should be the middle connection. Make a good connection, test your cable with some home equipment and then wrap up the exposed bits in electrical tape, test again, and proceed to the fun bit.

You can see the long exterior bts here has been wrapped in electrical tape, while the two signal bearing wires are yellow and white.

iPod installation Guide
1. Creating the 1/8 inch phone jack patch cables.
2. Removing the console molding
3. Installing the auxiliary adapter and jacks
4. Plugging in the iPod