Up here in Waupaca County they went to a simulcasted system a few years back that supposedly transmits simultaneously from about 6 towers on only one frequency; not trunked. The system techs had to sychronize the GPS receivers at each site to make sure they were transmitting in sync as the system had issues at first. I still don't think they got it quite right but it is better. Often I hear units complaining to each other that they were digitized when I heard both of them just fine. And then other times units talk back and forth and I will miss a short transmission when clearly they both heard each other just fine. Even trying to use my Uniden SDS scanners on the system doesn't help things at all. In fact, I can hear more clearly on this system with my WS1040 by programming the channel for P25 with no NAC. It opens the squelch much quicker than my SDS scanners and I then have a chance to catch the transmissions. (Or at least parts of them.)
My theory is they are using C4FM P25 and not LSM and the towers are slightly too far apart to properly simulcast C4FM. The techs have tried setting the system up to work with it, but it's still not perfect. Which is why my SDS scanners don't do better on it. If it truly was LSM then they'd do exceptionally well like mine do on the Outagamie/Winnebago TRS, which is LSM.
So that leads to you guys down there. Columbia might have went this same route and you are experiencing LSM distortion because the GRE lineage radios were never designed to receive LSM. Uniden's SDS radios were and are exceptional on LSM systems. However, if Columbia went the route that Waupaca did, in my experience they will fare even worse. And the GRE radios will receive an LSM system just fine if you are located near to one tower so it's signal can overpower every other one. The timing difference doesn't affect it. Which is probably why the friend with the WS1065 is having no problems as he must be receiving one tower much more strongly than the others.
Since the article said they intend on using encryption, I would hesitate to try an SDS series scanner unless you can return it with 100% money back.
Try to experiment with all the examples in the following article and let us know if any of it helps:
wiki.radioreference.com