I had a very similar problem with my CDR220, only it was FM that gave the trouble. I ended up replacing the CDR with an aftermarket Pioneer, and the problem was solved.
However, I hated the disco-light show aspect of the Pioneer, so I recently replaced it with one of the Continental units with the Bergvill FX wiring harnesses. You can find a link to those using the search function. The Continental head unit looks, works, and sounds great, and the one time' I've listened to AM, it was just fine.
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