I ended up using my dremel to put a hole in the back of the dash kit and run the cable into the cubby hole. I only pulled enough cable through to be able to hook up my iPod so it's not hanging out all over the place.

I'll take a picture tonight but so far I'm loving it. The cubby hole with the dash kit is made to hold cds so it has fins. This keeps the cable down when it's tucked back there and also securely holds the iPod. It's really not noticeable even with the iPod in there. The glove box is a good idea but I wasn't too keen on drilling a hole for it. Also, for me, it's a lot easier to connect/disconnect the iPod when it's in the cubby as opposed to in the glove box. My iPod always goes with me so for ease of connect/disconnect, this is ideal.

As I said, thanks to everyone for their advice on this.