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I bought a thingie at Wal-Mart that plugs into the cigarette lighter outlet and transmits signal to the radio through my choice of several different frequencies. IPod signal comes in via the headphone jack. The neat part is that it also has a USB slot and controls so that one can plug in and play MP3s loaded on a simple USB storage device. It's pretty slick except that the sound quality isn't so hot.
Here's another possible work-around. I'm not inclined to try it, but I have heard of folks modifying the tape deck of their Volvo radios (newer S70 type models like the SC-816) to accept a headphone jack input. It involves disconnecting the tape reader and replacing it with the headphone jack leads. Then you still need to trick the player into thinking it's playing a tape. Perhaps this method could be employed using an early 240 radio. It's a lot of fooling around, but sound quality might be better than an FM adapter.
-Will
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850 / Mini
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