I have the Monsoon system with 6 CD changer. I brought my H3 to a local car audio installer on Tuesday. He connected the iPod through the AUX input on the back. He used a brand called SoundGate. Anyway, there is a wire that comes up through my middle armrest. No drilling what so ever. There is extra cable, so I can connect my iPod -- select my songs, leave it in the cup holder or put it away to keep things neat. I prefer the later. I set up a playlist and then hide my iPod -- keeping my H3 interior looking very factory. I have the mount on my Ford, so the iPod sits out. I found that everytime I leave my car, I'm scrambling to hide my iPod to prevent breakins. With my H3, I have no worries. If someone breaks in, it's for the H3 and not the iPod.
I'll post a pic if anyone's interested. I plan on posting pics of the beast anyway.
-Chris