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For more on marking an answer as the "Best Answer", please visit our FAQ.The itrip won't work!, I've just upgraded from a 40GB ipod to a 60gb video ipod and they've done away with the old style top connection. It only has a basic jack plug on the top now - So my itrip is now redundant! But I'm sure they're already working on a replacement model.
Look at this link, there's no hole for it to fit in any more
http://www.ithings.co.uk/item--Griffin-iTrip-for-3G-4G-iPods--iTrip.html
I used this as well, because the itrip used the power from your ipod too. Also this gets less affected by interference, and it holds you ipod in place and charges it.
http://www.ithings.co.uk/item--PodGear-CarDock-FM--CarDockFM.html
But also have a look here. There seems to be preorders for new items coming out for the new ipods.
http://www.ithings.co.uk/cat--FM-Transmitters--FMTransmitter.html
You can get aftermarket models (not made by apple) that will fit into a standard headphone socket only. Try Amazon and ebay.
Quizmonkey's right - technically they are illegal, but it's not on the same levels of pirate radio or anything like that - it's just because it broadcasts on bands that the general public could pick up, and there's no exception for minimum broadcast strengths.