Here's a bit more back story. I bought the iFi for my family for Christmas. My wife and kids all have minis. They work fine. I have a nano. It would not work, so I checked on this forum for help. I noticed that other people had the same problem.
I also noticed that Klipsch was promising that the nano insert would be shipped soon. Since there were so many nano/ifi problems being reported, I hoped that the insert would be more than just a piece of plastic - something I assumed even more given the delays in actually getting the inserts manufactured and shipped. They were originally promised Q4 '05, but didn't ship until last month. Seems odd that just a simple piece of plastic would take so long to finally figure out and also cause so much excitement upon the news of its distribution. Once again, this all led me to believe that the nano/ifi problem was chronic and that Klipsch was fixing the problem with an insert/adapter.
I even sent this email to Klipsch back in January, but got no response:
"One additional question - is the insert just a plastic sleeve or does it do something special to get the Nano to work with the iFi? I tried connecting the Nano as is - not a solid fit, but I still expected it to work once connected. It didn't. All the other inserts that came with the iFi are nothing more than plastic sleeves, so I hope that the Nano insert has additional capabilities to get the Nano to actually work with the iFi."
So, all said, I wouldn't characterize my assumption that the insert could conceivably be more than just a piece of plastic as misguided. Unfortunately, it looks like I spent hundreds of dollars on a product that doesn't work as advertised. It's sort of like buying a car an not being able to turn left. Everything else works great, it even looks good, but if I'm traveling east and want to go north, I first have to turn south and west before I can turn in the direction I want. It gets me there, but it's a pain.