I discovered this last night while driving home..
usually if you have a good empty station, you'll have good enough transmission but typically, there's a lot of annoying hissing noise that comes with using the fm transmitter in your car..
Well, i figured since it should be the whole circuit resonating, if i plug in the headset, that should act like an antenna, giving me better reception. i did that and for a second, i had clear reception, then the transmitter switched off, that's when i discovered the transmitter doesn't work when something is plugged onto the AV port, i'm guessing nokia did this to stop you from giving the transmitter more power, but then the usb port is one other thing you can use to plug in an "antenna" i plugged in the usb cable(the other end's not attatched to anything, just leave it hanging) then wolla... reception was much clearer. I noticed it wasn't quiet as crystal clear as it was when i plugged in the headset but hey, it helped a lot. So next time jsut plug in the usb cable and enjoy clearer reception(assuming you don't need to charge your phone)..
Good tip. Yes the noise free range is pretty poor but if you are able to locate the phone within a few inches of the receiving radio's antenna things improve noticeably.
BTW plugging in the headset acts as a switch for the RDS radio with it's lead as the antenna, so maybe even though you are not using it the FM transmitter is switched off to prevent a potential howl-round situation.
Richard