Octavia mk2 and phone/mp3 options

Hi All,

Please forgive me if this has been answered elsewhere, but there are so many threads that I've got myself totally confused as to what my options are for getting my iPhone working with my head unit.

This will be my first Skoda, an Octavia 2.0 Tdi PD Elegance DSG (2005 model), its got the factory fitted sat nav, I think its a Nexus/MFD2 from what I can tell. I'd like to get my iPhone 3g hooked up somehow so I have handsfree phone, and also can have my music through the vehicles system.

What is the easiest way to do this without spending mega bucks? Again apologies if this is answered elsewhere, please be kind I'm new