Should do - it's an FM modulator. It sends the signal straight into the aerial lead, rather than via wireless transmission. The radio sees it as a radio signal input so you still have to tune the radio to the correct frequency. There should be very little interference, unless you had a very strong signal very close. You may well need an aerial adapter as well if your aerial connects via a Fakra style (square) connector rather than a round co-ax. Track control will be directly via the iPod dials, volume only via the radio (including steering wheel).
My take on it was like this:
http://www.vectra-c.com/forum/showthread.php?t=52950
but now I have Parrot MKi9200 which beats it hands down, and does the phone.
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