Turtle Beach X41 Xbox 360 Wireless Gaming Headset $105 at eBay
Buy.com has the Alpine EX-10 Universal Bluetooth Handsfree Car Kit with iPod Controller for $35 - $0 shipping = $35 shipped. Features a 2.4" LCD, stereo audio output, Bluetooth audio playback with A2DP support, and FM transmitter. [Compare]
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FM transmitter = bad idea. The hiss will get old and it will get tossed into the pile with all the other stuff.
FM transmitters have never been that good for sound quality.
Not sure if I want folks watching videos while they're driving...
Unless your MP3s are hi bandwidth/top quality, the FM transmission shouldn't be a problem. Of course, that depends on the quality of the FM units you are using.
Actually, this also has a 3.5mm cable to plug into Aux input, if your car audio has that option. The sound through the aux input is great! This, however do not play video, or charge the newer ipod touch. The blue tooth mic sucks bad! I got this when it was $50.
Maybe if it had GPS function too... it looks the part