Keep it in your pocket and use a Ijet.
http://abtech2.com/They work great and the ipod is safely in your pocket. I just clipped the remote to a set of wires at the handle bars so I can access it easily w/ my left hand.
It allows you to skip forward and back, controls the volume and pauses it and it will save on the wear and tear of the ipod being strapped to the bike and having issues w/ vibration.