It will play video if you connect a cable from the iPod to the A/V ports on the back of the center console. I do this with my Zune.[/color]
For my Zune, I have a flexible mounting arm that bolted to the seat track (it tucks nicely out of the way when not in use). I have a holder on the end of the arm that holds a Zune interface that provides connections for the A/V and a charger (I've seen the same thing for the iPods). I use the 12V charger on the back of the console and the A/V ports and the results on the screen are fabulous.
The Zune unit comes with a remote, so everything is good to go.