Maybe its your head unit or the station you chose...not all FM receivers are created equal. FM transmitter works fine in my 20th AE GTI, with a "stubby" antenna, and Pioneer AVIC 700. I leave my 900 in the cubby hole in the dashboard with the antenna in the back of the car. Seems like the FM transmitter is on the "right" hand side (by the N900 logo) as when I had it sitting in the cup holder, with the N900 logo on the bottom, reception weakened.

I was able to stream internet radio feed over FM transmitter during 2hr interstate trip over the holidays...no issues with signal