I bought a short cable from Wal-Mart for just a couple of bucks. It has a mini-stereo plug on one end, which hooks up to the iPod, and two RCA stereo plugs on the other end, which I connect to the CD input on my receiver. Sure enough, I do have to up the volume on the receiver to ridiculous levels to get decent volume. It's a low-tech solution, but works pretty well. Not to mention that it sounds just fine. I just have to remember to lower the volume when switching inputs back from the iPod, otherwise I'd fry my eardrums!
cheers,
supervij