JM, I wouldn't buy that FM transmitter. They ruin good sound. You can put an amp under your seat and hook your MP3 directly to it. Either that or buy a Kenwood with the cassette and use the cassette adaptor for the MP3. That gives you great quality sound too. You are definitely on the right track with the MP3.
Yup. I've got an adaptor that goes from headset jack to RCA. And since the amp has 4 channels, I have another adaptor that splits the RCA's into four males. That way you can input into all four channels and get the most out of your amp if you have front speakers. The only down side is I have to unplug the indash stereo to do it. But if you aren't going to use the indash much then it's not a big problem...