I got one of these for a surface mount 3.5mm jack:
http://cgi.ebay.com/PAC-iSIMPLE-IS335-3-5mm-Dash-Mount-Aux-Input-Kit-/110617063401?pt=LH_DefaultDomain_0&hash=item19c14a6fe9
Fits really well, looks good, and has enough cable length to get to the headunit. Mounted it in the same place as tlo, and no clearance problems here.
I also got this cable so I could use the PDMI plug:
http://cgi.ebay.com/Black-USB-3-5MM-INTERFACE-AUX-CABLE-iPOD-touch-2-3-/250657820107?pt=PDA_Accessories&hash=item3a5c5ecdcb
I use a 12v-USB adaptor for charging from right beside the input jack. I find if I use the PDMI cable though, the output volume level is too high and starts to distort at anything above volume 3 on the headunit (like when you have the iPod volume at 100%, rather than the recommended 75% when using the headphone jack). I've only seen one other person on here use this setup - any issues? Redfloyd, do you know if there's a way around this?