Welcome to GreenHybrid!

Do you have the NAV radio (GPS + energy management screens)? If so, one option for iPod integration is to purchase the FRDW/PC-POD.

I got mine from MyRadioStore.com for $120:
FRDW/PC-POD Input Adapter for iPod with Control and Charging for Ford
(frdw-pc-pod)

I have a 2006 Ford Escape Hybrid, loaded including Nav, and I have a 4GB iPod Nano, and the FRDW/PC-POD is working flawlessly for integration. It charges the Nano and allows you to control the Nano via the factory stereo. It bypasses the 6 disc CD changer under the passenger seat, and you do not get song/track info displayed on the factory stereo, but the sound quality is good and you can have playlists (up to 6).

- Shannon (Geeky, Wild Texan)