Matter of opinion about the old nokia's I'd say, but where there's a will there's a way!!
The mic port you talk about is indeed standard fit so to be able to use your ipod with you stereo you will def have to fit a new stereo. From my experience....if you are going for it I would rather spend the extra £20 - £30 and get one that has a connection in the back of the stereo. If you have a look about on here, some people have fitted them to their ashtrays.
And by the way.....I am very jealous of your interior!!!!! Always wanted red seats!!!