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If it is scratchy then replace the cable, if it sounds distorted then turn down the volume on the iPhone and use the radio volume jurob said.
If the iPhone is set too high or "hot" it will be more than the small speakers on your bike or in your helmet can handle and cause distortion and eventually blow them. First rule in electronics troubleshooting though is to check the weakest link which is the cable as the good Dr. said.
There was a previous post about a Gentleman who re-placed his spark plug wires with SE wires and he said it eliminated a load of static on his intercom. Cannot remember if he said anything about phone, but it may be applicable
Animal, please post back if the volume controls fixed the problem. Similar problem with iPhone....I tried to use an other-than-iPhone ear buds with the phone, and it had a lot of static. i know it's not the ear buds, because they work fine on my mp3 player, and when i tried the iPhone buds in the iPhone, they worked fine. Just guessing something about compatability problems.
From experience the problem with the Iphone over just an ipod is the phone its self, being that it is a phone you are probably hearing the phone "communicating with the towers". I have had an adapter with my truck and I get the same thing. Just my opinion.
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