Had this problem. It's got something to do with the Static reduction control. Radio is factory preset to reduce static from stations that don't come in that well. what happens though is that it sounds like the volume is being turned up and down and the treble is dropping out.

Fix like so (from someone on this list, BTW)

1. With power on, and radio on FM, hold down CHGR button.

2. Turn POWER off, while continuing to hold down CHGR button.

3. Turn POWER back on, while continuing to hold down CHGR button. Display should indicate SRC2, which supposedly reduces static. Hit preset button #4, at which time display should state SRC4. Must be done w/in 10 secs.

This should deactivate the SRC. I'm not sure what SRC 1,3,5,6 do, but I'm certain 4 deactivates.

Now at least the sound isn't muffled, but the static can be grating at times. Personally, it's less grating than the other way though. CD is awesome, radio on this unit just isn't good. Oh well.

BTW, as noted above, I got this fix from someone on the list. I had been to the dealer about six times to get this problem fixed and they tried everything, from replacing the antenna cabling, adding antenna amp., all to no avail. Finally, I did the fix myself and then the dealer calls me back to say they got a technical bulletin on how to fix it, but I must bring the car in, couldn't just do it over the phone. Just to see what they'd do, I brought it in. wouldn't you know that they put back to the ORIGINAL SETTING!!!!

Just shows to go you.....Good luck!!!

Cliff '98 S70, 32.5K