Unfortunately, the iPhone cannot decode the 64 kbps stereo AACPlus stream of Pandora so it gets a 64 kbps mono MP3 stream instead. To me that is not a very good alternative to local files which I have mostly at 320 kbps stereo MP3. It's fine on the iPhone's speaker but not on the car's speakers.

[edit]I've tested this on my own iPhone over Edge and despite what I've read, I can definitely hear stereo separation and don't hear any compression artifacts normally associated with 64 kbps mp3 files. So they may have rectified the limitations.[/edit]


Stu