Many of the very expensive radios are actually crappy tuners.

The logic is that most people who paid serious $$$ for a sound system are not really radio listeners; they're more iPod or CD or DVD consumers. I think that logic is BS but that's what it is. :'(
FWIW, a good tactic with radios is to get an HD Radio tuner, if you can. Doesn't matter if you want to listen to HD or not, but the tuners in most HD Radio receivers are excellent tuners. They have to be to get the -20dBc (or -14dBc) HD carriers.
I'm guessing what Aerie is hearing is an intermod product of some kind, although I'm not sure exactly how. You can 850 on 1700 in a lot of Boston, actually. But that's just a simple harmonic, not an intermod product.