You can only use the iLuv remote with the Apple firmware.
However, basic playback works fine in Rockbox firmware with the i177, you just can't use remote, sleep or "wake-up-to-i-pod" function. Remote volume controls and mute work fine, but that's independant of the iPod. It's the best damned alarm clock I've ever owned though 8-)
Personally, I mainly set up a "chilled" playlist, set the rockbox sleep timer for an hour or so and drift off to my lovely music... and then get horribly woken by the painfully shrill iLuv buzzer in the morning (warning! it's harsh!)
Fingers crossed for eventually getting basic remote support for the iPod with Rockbox.