Same problem with me. I tried different FM transmitters and modulators, but the static is terrible. I'm willing to modify my stereo, if i know where I can solder an AUX input.
Here is my stereo inside:
http://s590.photobucket.com/user/zemonti/library/Mobile Uploads
Here is my stereo inside:
http://s590.photobucket.com/user/zemonti/library/Mobile Uploads