I love answering my own questions. Here is how you make the mp3car usb module work in linux

(requires recompiling the ftdi kernel module):
2 files to edit :
ftdi_sio.h
ftdi_sio.c
located in /usr/src/linux/drivers/usb/serial (your path may vary)
You have to 'tell' ftdi the vendor and product ID of the device (look at my lsusb output above). Here's a patch to add the lines you need:
diff -ru linux-2.6.20-gentoo-r8/drivers/usb/serial/ftdi_sio.c linux-2.6.20-gentoo-r8-xmpatch/drivers/usb/serial/ftdi_sio.c
--- linux-2.6.20-gentoo-r8/drivers/usb/serial/ftdi_sio.c 2007-10-15 23:15:20.000000000 -0400
+++ linux-2.6.20-gentoo-r8-xmpatch/drivers/usb/serial/ftdi_sio.c 2007-10-15 22:13:57.000000000 -0400
@@ -495,6 +495,7 @@
{ USB_DEVICE(FTDI_VID, FTDI_ATIK_ATK16HRC_PID) },
{ USB_DEVICE(KOBIL_VID, KOBIL_CONV_B1_PID) },
{ USB_DEVICE(KOBIL_VID, KOBIL_CONV_KAAN_PID) },
+ { USB_DEVICE(XMD1000_VID, XMD1000_PID) },
{ USB_DEVICE(POSIFLEX_VID, POSIFLEX_PP7000_PID) },
{ USB_DEVICE(FTDI_VID, FTDI_TTUSB_PID) },
{ USB_DEVICE(FTDI_VID, FTDI_ECLO_COM_1WIRE_PID) },
diff -ru linux-2.6.20-gentoo-r8/drivers/usb/serial/ftdi_sio.h linux-2.6.20-gentoo-r8-xmpatch/drivers/usb/serial/ftdi_sio.h
--- linux-2.6.20-gentoo-r8/drivers/usb/serial/ftdi_sio.h 2007-10-15 23:15:09.000000000 -0400
+++ linux-2.6.20-gentoo-r8-xmpatch/drivers/usb/serial/ftdi_sio.h 2007-10-15 22:04:02.000000000 -0400
@@ -166,6 +166,12 @@
#define KOBIL_CONV_KAAN_PID 0x2021 /* KOBIL_Konverter for KAAN */
/*
+ * Mp3Car Usb XM Direct
+ */
+#define XMD1000_VID 0x6846
+#define XMD1000_PID 0x0002
+
+/*
* Icom ID-1 digital transceiver
*/
once the patch is applied, recompile either the whole kernel, or just the module and install it. now reboot (to make sure the new kernel works) and plug in the usb line. dmesg should show that /dev/ttyUSB0 was created. Then you can use xmpcr2
http://www.files-library.com/files/XMPCR2.html to control the xm direct unit.
Put another check in the column of carpc hardware that works in linux
I'll be updating my carpc page with a more detailed write up if anyone needs it.