Yes Houston, there is a problem
I bought a 996T last year at the Dayton Hamvention. It does the same thing here in Ohio with the Hamilton County Cincinnati APCO system. Signal strength bounces up and down most of the time and the voice becomes garbled.
I was thinking of buying a hand-held scanner this year. I was considering the 396, but because of the 996T problems, I decided to go with the GRE PSR-500 and got it from AES since they had a Dayton special of $429.. I loaded it up with virtually the same frequencies as are on the 996T using the Starrsoft software.
What a difference. When I put the two scanners next to each other, using the stock included scanner mounted antennas, the GRE runs rings around the 996T. Now the PSR-500 is not perfect. Sometimes audio may drop out briefly, but compared to the 996T, they are world's apart.
The audio sound crisper and clearer on the PSR-500 compared to the 996T which sounds heavy and bassy. The PSR-500 scans a lot, and I mean a lot quicker. I am listening to many more conversations now.
BTW, I do have all the latest updates for the 996T. Also, since the 996T had the new firmware loaded, I now have an annoying tick sound that comes at the end of every trunking transmission (does not happen on conventional channels).
I believe the 996T has poorer adjacent channel interference rejection or the front-end is getting overloaded. Uniden issued this firmware update to make the 996T sound "like the other guy's" audio. I can tell you from comparison, that Uniden is not even close yet.
On Friday I placed an order for the PSR-600 with the intention of replacing the 996T. If the PSR-600 performs better, then the 996T is going up on ebay.