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I actually have gone the PAL route, and have been very happy. Bought the unit from a dealer, installed it myself, but had to get it programmed at the dealer for about $90. I went on craigslist and asked for an iPod with a cracked screen or bad battery since it was going to stay in the glovebox all the time. Got an offer the next day for a 4gb nano 2nd gen for $50. For a total of $300 including the pod, I would say it is worth it. It does not charge my 3gs but something like the PASSport by scosche should work fine for the 3g, 3gs and 2nd and 3rd gen touches. 2g iphones and 1st gen touches will work just fine out of the box.
About how it works. It was a PITA when I first started using it, but once you get the hang of it, no problems. It uses XM channel 1, but to switch between XM and PAL, you have to hit the band button three times. I had CH 1 programmed under a fav, but it wouldn't work while using XM. The controls work well, you can have the screen cycle between song, album, time, and artist. It also can search by album, playlist, artist, all songs, or alphabetically.
The only problems I have had is that sometimes it will activate theftlock, but that is simply fixed by turning off and then on the radio. It is a little squirrelly since I removed the battery from the iPod since it was shot; it won't start off where it left off sometimes and takes a while to recognize the pod since it has to boot every time the car is turned on.
But TLDNR, if you are a big iPod fan, and you have some extra cash burning a hole in your pocket, you won't be disappointed.
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