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Yeah, I am somewhat disappointed in this too. The video signal is available at the docking port of the pod, but the car doesn't use it.
Even then, it still won't work. The physical cable itself needs to carry a video signal with "Apple's special chip." With the latest generation of iPods and the iPhone, Apple requires you to buy their composite or component AV cables since it contains a chip to lock out 3rd party accessories from being made.