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The cassette deck to ipod hookup will likely be much more reliable from an interference standpoint and have a cleaner sound than the FM transmitter. I use one in the 525 and it outperforms my FM tuner that I use in cars with only cd players significantly.
However, it will still fall well short of the sound quality of a newer head unit with a direct connection. The sound quality is simply better when it is transmitted through the dock connector as opposed to the headphone jack. I like the cassette deck though as a cheap solution.
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Garrett
Living and Thriving
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