Try one thing at a time.
I'm not familar with that particular receiver, but here's what I would do.
you're not plugging it into a phono input, are you? If so, take it out and plug it into an "AUX" input.
Then if the problem persists, I'd replace the cable.
Make sure that it has two male RCA jacks on one end and that 1/8" stereo mini-plug on the other side. Go to RatShack and tell them what you intend to do with it. Unless they are totally brain-dead they should make sure you've got what you need.
With the receiver powered down, connect the RCA jacks of this cable to a high level "AUX" (not a phono) input of the receiver.
Next. take your Ipod or a portable CD player and plug the mini-plug into the output of the portable device. Make sure it's running on battery power for now.
Turn the receiver on and select the "AUX" input.
If you've all done this as directed and it still screws up, then the receiver is kaputz.