I use an FM transmitter in my car but I have to turn my car stereo up really loud for the sound to be adequate volume. I have tried it in headphone and line out mode, both sound identical. Then I did the volume fix and tried it again, the sound is horrific(!!!) SOOOO distorted that you just couldn't listen to it. Same with headphones, not just through the transmitter. BTW, I have turned the volume restriction back on, as it was unbearable with it off. Incidentally, when I plug the hd3 into my hifi, I have to keep it in headphone mode or it is distorted. And I am using better earphones than the supplied ones, before anyone tells me its that!! Anybody understand what is going on? Please help!! I'm confused!