Been having some problems with the PAC unit, even a replacement unit has the same problems.
I have a satellite radio on aux input 1 and my ipod on aux input 2. If I have the satellite radio "on" but I switch to play my ipod, you can hear crackling noise in the backround coming from the sat radio. This also true if I have the ipod playing but listening to the satellite radio.
Also, the sound coming out of the PAC unit is not very clear, especially with the sat radio. If I use my cassette adapter you can hear the difference, highs and lows sound cleaner.
Has anyone experienced similar problems?

 

I also had cross talk between the two inputs on the PAC - detectable at even moderate volume levels. The only solution that I know of is to turn off the other component. It seemed that mostly bass notes would create the "noise".

With only one input powered at a time, I found the signal to be quite good. I did not find it to be muffled or distorted. So I am not sure I can confirm any issues with that...

"no highs, no lows - must be Bose..." - your comment reminded me of that - but obviously if the cassette adapter is working better then that is not the issue. I tried a cassette adapter and it sounded terrible in my G (the same adapter worked fine in my minivan though - not sure what was up).

 

I have the same setup, and same problem with my PAC, but I never notice it if I turn the other unit off. For example, if I am playing my Ipod on SAT 1 I turn off my Sirius Tuner, and if I want Sirius, I turnoff my iPod.