I've give up using my iPod connection now, it's really annoying me. The sound quality is awful... I have to turn the volume up to 30 so anything is audible, but because it's so high I just get hiss and distortion from the speakers.

I've fiddled with the EQ settings and sound check on the iPod and nothing's changed...

I'm using a 5th Gen 16gb Nano with the official Apple cable and a 3.5mm cable. Is it worth getting the Y-cable or should I just get a better quality 3.5 cable?

It sounds to me that you have issues within your connections in the centre console. I use an identical setup with a 5G iPod Video 30gig - and it works a treat. Get it down to Ford and get it looked at.

Stupid question but have you turned the volume up on the ipod all the way. I have an old ipod photo that i use and when i turn the volume up on the ipod to full the stereo volume only has to be on 8 to have a decent volume and if i want it loud i only have to turn it to 13.

Yeah I turned it to max before plugging it in and it's no different :/

Could be worth going down to a dealer and asking

Thought i would ask that question. The problem you have sounds simerlar to my old mazda 2. Basically the usb powers/charges the ipod and the aux is where the audio comes out of. On the mazda if the ipod was being charged the audio output would sound disttorted however when i removed the power lead the disttortion went.

It sounds like your have the same problem howvever in the fiesta this problem should not happen as the aux is not linked to a power supply. Try it with the aux

only and see if the sound improves. If it does there is a deffinate problem that a dealer will need to sort as the fiesta should cope with being usb charged with the aux being an outout without disttortion.

You dont actually need the y cable i use the usb ipod lead and an aux lead and have no problems.