Is this the holy grail? I've tried all kinds of tricks to do remote control of iTunes. None have worked, AirTunes has been a bust for me. I've tried NetTunes, SlimServer's software, various AppleScript hacks, VNC, TuneConnect, and about half a dozen others. I've also reviewed Sailing Clicker and considered the Griffin remote.
Everything I tried foundered on the shores of Fast User Switching, performance and usability issues, or Apple's FairPlay DRM scheme. I finally realized that AppleScript wasn't going to work because Apple doesn't really support AppleScript with FUS (makes me think they're going to sunset AppleScript ...). 
The only thing that looked promising was running a web server using CGI Scripts. Looked like a lot of time to setup, but it sorts out the FUS issues.
Then, in a recent search, I came across Mindola Software: PatioTunes. This could be it - but testing is early. I've already found one nasty bug; the author makes the common mistake of thinking everyone runs as Admin (bad, bad, bad practice). If you install this as admin then run it from a non-admin session the internal web server files are inaccessible. Dumb. I changed permissions and will write the author.
Ok, that aside, it's impressive. It's a Java web server that communicates with iTunes, perhaps via AppleEvents. Anything that runs a browser can access it, the only glitch is some obscure browsers need a manual refresh to see new playlists. Unlike the Apache solution you don't have to hand-build playlist references, it gets the playlists itself.
Cost is $15. Well worth it if it works!
 I took the easy solution and bought myself a new 30G iPod. The old one is now a fixed music server, permanently plugged in. It lives by the stereo. Since it's a 3G iPod I ordered a very cheap FM remote from Griffin (all the 3G/4G peripherals are being dumped because they don't work with the video iPod or Nano).
Update 2/18: The author is now working on the permissions problem. I don't think they'd understood it before. The author was likewise rather surprised to learn that PatioTunes is compatible with Fast User Switching. I guess it was a happy side-effect of using the web server approach. I re-enabled my OS X firewall adding an entry for the PatioTunes default port.