Re: Bruce Carter ... help here ... see below
> But Bruce Carter does.
>
> He will be along shortly.
>
> Well, I don't really know if he is short, but he is smart
>

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Thanks for the compliment - it sounds like your receiver design is less than optimum. Retrofitting it to correct problems may be more trouble than it is worth - a trip to a Radio Shack to get a GE Superradio 3 may be quicker and cheaper.
I see this a lot on new cheap radios based on a "receiver on an IC" design. Such radios usually have one ceramic filter for IF on AM, and one for FM. The ultimate noise floor for a single ceramic filter is only 40 or 50 dB down, so they are prone to overload if you put a strong signal into them.
The way to solve it is to put in more AM ceramic filters. The easiest way to that is to buy one of those wireless mice, and scavenge the ceramic filter out of it. More than likely, it is a three stage stagger tuned filter from Murata in a black case with five pins. Three of them are ground, one is input, the other output. Because it is a three stage filter, it will have a noise floor way lower than a single filter. Because it is stagger tuned, it is relatively wideband, which means the selectivity will not be great on adjacents, but you will get broadband sound and reasonable alternate channel selectivity.
Not all wireless mice have the same ceramic filter, and you might end up paying $25 or $30 and not getting the filter you need - there is a new technology from Texas Instruments (shameless plug) that doesn't use an AM ceramic filter at all. That is why the safest bet is to just get a decent radio to begin with. If you already have a good AM radio like an SR-3, sorry to tell you but it is defective.