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Thats weird. Are your TyTN II's branded as the AT&T Tilts? Because mine is the unbranded HTC Kaiser (same phone) and it sounds fine for me. The only minor complaints I have about it are that it couldn't download my phonebook and that it doesn't show new text messages on the nav screen (although I'm not sure if any other car navs can do that).
I tried an ATT branded Tilt, and a generic unlocked Kaiser... both had the exact same crappy sound... and the person on the other end could not hear me. Could be the car?