I use a Motorola T505 Bluetooth FM transmitter in my car. When I am playing any media over it (specifically), and I have the stock WiFi Hotspot engaged (also tried it with SVTP WiFi Hotspot - same results), the media will cut in and out every 3 seconds for about 1 to 2 seconds. If I turn off WiFi Hotspot, the media plays fine. If I play it through the phone speaker (with the Bluetooth off) it plays fine.
Let me clarify what media I've tested this with - Pandora, Tunein Radio, Amazon MP3 cloud player, and local MP3 played through the stock player.
I am rooted, but not moded, I have the hack engaged for the stock WiFi Hotspot using this method .
I have a Samsung Droid Charge, and it does not have this issue under the same circumstances.
Just curious if anyone else has had this problem, and how they got around it. I may try another 3rd party WiFi Hotspot (Other then SVTP, something Adhock). Very frustrating "feature". I am running the .902 Android