iLounge has a review of the iHome (warning: flash) iH5 clock radio with iPod support that I was pretty excited about. They were pretty impressed with it.

if you%u2019re planning looking for a better iPod-specific clock radio alternative today, you won%u2019t find it. iH5 is the first of its breed, and quite close to the best implementation we could imagine for the price. There%u2019s room for improvement, but not much - the mark of our highly recommended, A- rating.

The sound quality is good, it's no Bose but it's only $99. It's also missing the remote with which was originally announced, looks like you have to buy it separately. This is on my shopping list for sure.