Jim, this may be way off base, and if so, don't tell Jay I suggested it. But 
considering you are finding a threshold point of distortion in your recordings 
that others don't seem to be encountering, is it possible that you have your 
Ambicom wireless card in a different slot than they and that the L.E..D in it 
is causing an interference with the proximity of the microphone as you record 
that it is far enough away in the other slot to not be creating? I'm not 
pulling this idea out of space. In the MuVo from creative labs, they have an 
internal Mic that allows you to make recordings on the little bity device, but 
the L E D that lights the screen  causes a hum on the recordings. They seem to 
have finally fixed ths problem on their last update, but it was a concern for 
quite some times, and the light had to be turned off to make recordings. So 
it's just a thought. The Ambicom light is on all the time it is in its slot 
either blinking for stand by or on constantly when the wireless connecti
on is active.

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