Music/Calls in Non-bluetooth Car

[gsd0519]

I have a non-bluetooth enabled car, with no tape deck.

1. I want to be able to play my music from my Eris over the car speakers.
2. I want to be able to have a hands free phone conversation over the car speakers.

I was thinking:
1. FM Modulator attached to the Eris to play music and broadcast the calls.
2. Bluetooth headset with the FM Modulator then pointing to the stereo to talk to the person on the call.

Do you think #2 will work? (bluetooth > Eris > FM Modulator > Sterero?
Or is there a more elegant way to accomplish this?

thanks