Ipod Questions

I'm hoping I might be able to get some clarity regarding the ipod options for the Prius. I'm looking to purchase a new Prius within the next few months but am a bit confused regarding what options are available for hooking up ipods through the car stereo system, even after reading through some of the posts here. Mainly my question is, can an ipod be hooked up through a Prius II or is this only available on a Prius III? Is the same functionality available in both models? If not, what is the difference? I've read that the functionality was not that great in previous years, have people found glitches resolved in the 2011 model?

Any information you might have would be very much appreciated.

Thanks!