I just received this and paired an iphone 3g to a 1120-k. Everything was good so far until I began playing music from the iphone library. The sound was noticeably distorted/static no matter how close or far I was from the receiver. Turning volume up or down on the reciever didn't change the distortion. I then connected the iphone directly to the 1120-k with the supplied iphone cable and there is no distortion. I've read mostly good reviews of this bluetooth device so I'm wondering what could I be doing wrong? Could it be a line of sight/proximity issue?