I tried looking for loss connection but did not have any luck finding anything. I also tried a ferrite bead and it made no difference.
Here is another post that I put some information on
http://www.greenhybrid.com/discuss/am-radio-sounds-terrible.5871.html?page=1&highlight=radio+static
I have taken it to the dealership twice. The first time they did not do anything and the second time they said they do no look at these type of problems on the weekend.
I have not seen any resolution to this issue yet.
I have been listening to more WMF files since I have the NAVI unit and given up on AM/FM radio.