I haven't noticed any outstanding audio issues with my TP2. I have a cheap FM transmitter in my car and turning the volume on the TP2 down to about 60% fixes a lot of the audio problems.

Sound sounds great over A2DP to my headphones too - no issues there.

The quality on Pandora is just plain terrible - there's no getting around that. I use Slacker which is substantially better. Still not as good as MP3 but what can you expect OTA on a stream that'll play over 1xRTT if need be.