Turtle Beach X41 Xbox 360 Wireless Gaming Headset $105 at eBay
Yugster.com has the Kensington LiquidAUX Auxiliary Car Kit with Remote for iPod & iPhone for $20 + $5 shipping = $25 shipped. Includes liquidAUX auxiliary car kit, remote control, 4-foot audio extension cable. [Compare]
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Buying from Yugster is a very annoying experience.
Expect plenty of spam, but no customer service.
I bought the non-ipod version of this a few weeks ago. The sound comes over great. Unfortunately during phone mode people complain that there's a ton of background noise and it's difficult to hear me. Also, the USB charge port on it (I don't think the iPod version has this but I could be wrong) will not charge my phone (HTC Kaiser).