This is my first iPhone so maybe this problem existed with the first gen before purchasing my 3G iPhone I was using my iPod hooked up via an external input into my car stereo (not an FM transmitter). So basically I'm taking the headphone output and wiring that directly into my car stereo. I never had any issues with static sounds or feedback on my iPod. With my new iPhone I notice periodic staticy sounds while driving, kind of like a stuttering beeping sound I've heard the same sound at work when people have a stereo set up and a cell phone rings near by. Seems like some type of feedback caused by the cell phone. Anybody have this happen with their iPhone? is there any fix for this?