found my issue. When uploading the songs into itunes the default is 128k. There is a setting to change it to 256k. Much much better.

I also found this cord to purchase as my avr has an idock in the back. Hopefully that will also improve the sound quality when I'm playing the ipod through the avr instead of using the rca hookups in the front.
http://www.monoprice.com/products/produc...&seq=1&format=2