Gerry, I have my G5 Nano mounted in the upper front corner of the right saddle bag. It works great, I never mess with the thing so being there it is totally out of the way. I don't believe the cord you are referring to is the right one. I used part number 2877197. This cord allows full function and runs and charges the Ipod continually from the bike.
http://www.purepolaris.com/Detail.aspx?ItemID=2877197(PolarisPGACatalog)
?As far as mounting the Ipod in the bag, I bought a cheap clear hard plastic cover at Walmart for the Ipod and some adhesive backed velcro to stick to the inside of the saddle bag. This way it's easily removed for programming, etc and the cover allows mounting without actually?applying the velcro directly to the IPod. ?You'll have to make a hole in the saddle bag to pass the wire through, make sure you also use a rubber grommet to prevent the wire from getting damaged from vibration.?
?I leave mine set to play all songs in alphabetic order. They play in order based on the song title and that way you get a random variety of all the types and artists that you have on the player without repeating.?
?Good luck and ride safe!