I'm not sure why your Belkin car adapter doesn't work. I have the same one...over a year old now, and it does work with a cassette adapter plugged in. I do get the message that it is not meant to work with the iphone and asks if it wants me to use airplane mode. I just click no, and it seems to play the music correctly. It does however seem to heat up while charging, so I'm wary of using it, and for now am just plugging it in without the charger using an amp to help with the sound. I hope they make a similar unit that is designed specifically for the iphone, because I prefer using it with the simple Belkin charger unit.
I have read several posts that people can't get the music to play this way and that it won't transfer music through the dock connection. It is true it didn't work at first, but all of the sudden it started playing correctly after I plugged it in more securely. ??? I'm not sure why some people can't get it to work.