Can I connect my iPod to my car stereo?

Yes. Unless your car has an A/V port (the red, yellow, and white plugs like on a TV), the easiest way to do this is to use an iTrip or similar device. The iTrip plugs into the top of your iPod and broadcasts what it's playing on an FM frequency to which you can tune with your stereo.

http://www.griffintechnology.com/products/itrip/

A much less expensive alternative to those mentioned by other posters is an adapter such as the one I use. One end has a mini-jack that goes into the headphone port. The other end has a catridge that slides into my tape deck. This works just fine for me for as long as the battery lasts. Fortunately the batery lasts long enough to get me most of the way through a day of driving.

Definitely, I have a Kenwood KDC-X759 head unit with Kenwood's KCA-IP500 (Ipod controller)

The KCA-IP500 works for most Kenwood head units. It displays the info from the Ipod on the display, charges the Ipod, and plays the audio through my car speakers.It plugs in with a cable that attaches to the bottom of your Ipod. It sounds flawless, there is no digital loss since the audio on the Ipod goes directly to the stereo.

You can also look at your stereo now and see if it has an AUX in. You could use a RCA-mini 1/8 plug cable or 1/8-1/8 cable.

There is a IPOD integration kit you can buy online.

Get the DICE Electronics iPod integration kit.
http://diceelectronics.com/

You can connect a stereo dubbing cable to the auxiliary input in your car and then connect the other part to the headphone input in your ipod. You can purchase the stereo dubbing cable in a dollar store for 3.99 (in canadian dollars) or at a electronic software store for 11 - 14 dollars (in canadians money) they both make the same sound quality except the dollar store one is for a much cheaper price. It also usually comes with most home stereo sets.
Thats how you can connect it.

Yes. iPod will also sound great on your car stereo. Use an extension cable with 3.5 mm stereo connectors on each end to connect iPod to your car stereo system's auxiliary input, or use a cassette adapter if your car stereo doesn't have a sound input port. These items can be purchased at stores that sell car stereo accessories, or at the Apple Store.

If you have an Aux In port on your car's receiver but your deck doesn't have an iPod interface, you can either get the mini jack to audio RCA's, or your best option is to get an cable that plugs into the dock connector at the one end, and the other end there is a headphone jack and a plug to go into your cars cigarette lighter. This powers your iPod while giving better sound then using the iPod's headphone jack. I have the Griffin TuneFlex, and its awesome.

You can connect a stereo dubbing cable to the auxiliary input in your car and then connect the other part to the headphone input in your ipod. You can purchase the stereo dubbing cable in a dollar store for 3.99 (in canadian dollars) or at a electronic software store for 11 - 14 dollars (in canadians money) they both make the same sound quality except the dollar store one is for a much cheaper price. It also usually comes with most home stereo sets.

Get one of those extensions with the tape

yes unles you do not have a port