The meter test will be a problem, unless you have a very good meter... and even then it won't be simple. Your meter will at least have to have a sensitive AC Volts range, and preferably true RMS. The problem is that ratings on inputs and outputs are based on maximum sine wave levels before distortion, which are way higher than the average RMS levels of normal program material. So, for example, if your stereo Line In specs say 1 VRMS sensitivity, that means that a 1 VRMS sine wave will produce a full-power output when the volume control is all the way up. But you probably don't have any pure sine "music" handy to play through the Ipod. (Though I'm sure there are test tones available for download.)
If you do get 1 VRMS from a test tone on the Ipod, note that this will correspond to the peaks of the music, easily 12 dB or more above the average level of normal music. I'm not talking about sustained crescendos, but instantaneous waveform peaks that your ear doesn't notice as being especially loud because they are brief. The system must be able to reproduce these at their corresponding level, because if it can't it will clip them off and you will easily hear that as distortion.
Best regards,
Bob Masta DAQARTA v3.50 Data AcQuisition And Real-Time Analysis