I know there have been many posts about this, but I'm not sure if anyone has mentioned these modules. I have found the following 2 modules that are supposed to give a direct connection to the H3 stereo and charge the iPod at the same time. Unfortunately, you still have to control the iPod manually, but it looks like a pretty clean install.
Soundgate AUXGMV3 -
http://store.yahoo.com/logjam/soundauxgm.html
BlitzSafe UII -
http://store.yahoo.com/logjam/blitzuii.html
I'm trying to decide whether to go this route or replace the stereo, so if anyone has tried these modules please let me know how they worked. Thanks.