Playing audio from Apple TV through iPod stereo...

Hey guys, just got a new ATV and I'm wondering what to do now with my older one. I've got an Altec Lansing iM7 stereo hooked up in another room with a 30gb 5th gen iPod in it and it acts as my home stereo. Works well but I still have to go over and manually select playlists and stuff. I'm wondering if it's possible to have the old ATV act like an airport express and allow me to play all the music from my iMac upstairs through my iM7 stereo.
Let me explain further. I want to use my iPhone as a remote to select music from my ATV (or stream from iMac) and play it through my iM7. Think it's possible? The ATV has audio out left and right. The iM7 has an auxiliary in jack (3.5mm) for hooking up other devices I guess? Could I use some cable that will play the audio only from the ATV to the stereo? Once again, don't want to have to turn on the TV. Just want access to all my music and be able to play through the stereo and control it from my iPhone.
What do you think?

Did you ever use Airplay when the 1st generation ATV was hooked up (before your new ATV)? If it worked there, it will work in your new application. You will need some video to see what's going on with the apple tv. But once you get it configured, then you won't need the video device any longer -- airplay will pass the audio feed to your amp system.
It's a good use for device as you are thinking of using it, in my opinion, of course.

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