I forget when the 10 came out, but it is the biggest sounddock model. It doesn't have bluetooth when you buy it, but you can add bluetooth by buying that add-on I linked to.
The bluetooth receiver from Belkin I linked to (and others like it) works by plugging into a speaker's input port. Basically, it turns any speaker into a bluetooth speaker.
I think the adapter you found will work with the nano, yes. But since the new nano has bluetooth, I think playing music is much more convenient through bluetooth. You should consider it.