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Aside from sound quality, interference has always been a big issue. Around Philadelphia, there just aren't any clear spots of the dial.
Having said that, They make FM transmitters than plug straight into the antenna jack of the stereo. (You then plug the antenna cable into the transmitter for pass-through.) It's a little more cumbersome in that it has to be at least semi-permanently wired in. But I have one for my XM and it sounds fine (to my non-audiophile ears).
There are also companies that make add-ons that will give you a line in to the stereo. (Why even cheap systems don't have this in this day and age is beyond me--it would probably add about $0.93 to the manufacturing cost of the unit.) That's an even better solution but again would require some tinkering.
Having said that I don't know any specifics--if you check out some of the XM message boards they will give you an earful on these issues with more hardware pecifics than I have.
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