Yeah you can make it work. You have to get an AM/FM modulator. I have one from DLO (Digital Life Outfitters and it cost me $100. It is nice though and works very well.

You can get these at Best Buy or Circuit city or whatever. This is the model that I would recommend. I have an 80 gig ipod and it sits in there nicely. I think that you can go with a nano though. They make a few different versions.

I would give that a try bro!