Actually guys, it doesn't sound like the same problem to me. Meade and George describe their problem as a reception problem, while Mark's seems to manifest itself during PTT (transmit) operations.
Meade and George - remember there are 4 different volume/squelch levels involved here, without even going into the little pots on the back of the circuit board. They are: Intercom Volume, Intercom Squelch, Com Radio Volume, and Com Radio Sidetone. Oh yes, and you probably have volume knobs on your headsets as well.
Adjust your controls in the following sequence:
Headsets full up.
Intercom volume about 1/2
Intercom squelch so you just break squelch with mikes at lips
Intercom volume to comforatable level
Radio volume to comfortable level listening to a signal (ASOS, Tower, handheld)
Radio sidetone to comfortable level when transmitting
Try above and see if it helps.
Mark - Can you provide more info? Did it ever work correctly, or is this intial testing? If problem is only during transmit, have you adjusted your sidetone?