I just bought my Fusion 2005 Vibe with the moon and toons package. I have tried an FM modulator with my iPod and get a lot of static. Is there a line out on the back of the head unit that I can use?
I'm assuming you're using a wireless FM modulator...you might want to try a wired one if one of the other methods isn't appealing to you. I got mine for $35 at crutchfield.com and it works great. It's physically attached to the antenna input at the back of the head unit, so there's no static at all.