Since you have a B7 you probably have an RNS-E sat nav, you can get Aux In leads for that on eBay - which will work provided you have firmware version 0650 on the RNS-E and have access to VCDS to add Aux In to the RNS-E coding.
Most people fit the Aux In socket down beside the handbrake.
Depends on the level of interaction, auxin would only give you an audio path with no control element or visual data, so would all be controlled via the mp3 player, so question is what do you want from the system.
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