The default setting for quality in Pandora is "Normal." Have you gone into Preferences (after hitting the Menu button while in Pandora) and changed the Cell Network Audio Quality to "High?" Hopefully that will do it for you. Not sure if you need to restart the app or anything after changing this, but I think it's your problem. My Pandora sounds great, btw. Streaming it over bluetooth to a bluetooth gateway hooked into my aux port of my car, loving it.