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I got my nano working with the KCA-420i by folling the instructions on this site
http://nanospot.theplaceforitall.com/wiki/Tips_And_Tricks
"Then I tried to hook it up to my Alpine system in my truck. I use the KCA-420i interface module with a 30Gig 3rd generation iPod with the dock connector. When I plugged in the iPod Nano everything looked good, but no sound! All the track info was on the Alpine, and the iPod Nano screen showed the Alpine Logo. So back to the Apple support pages and found info that the dock connector has no audio out until you do a full restore with the iPod updater software. Did the restore (and reload all the music) and it worked with the Alpine then. Hope this info helps people if these bugs are more widespread than just my unit. Kevin C "
09/20/05 "I also encountered the same type of problem using an ALtec Lansing iM3 speaker system. Instead of restoring the software I just attached the headphones, made sure I could hear the sound and then connected it to the dock connector and voila! it worked. It does seem that the audio out needs something to "jump start" it..... -Carole A. LostLands.Net