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I have a 2004 Infinit G35 Coupe. In the factory head unit, there is a button labeled "SAT" which would switch to XM/Sirius if I purchased the option, which I didn't. I purchased a PAC AAI-NIS (www.pac-audio.com). What this unit does it plugs into the back of the Infiniti head unit on one end...

My Sirius tuner is wired directly into my factory head unit (Infiniti G35) using RCA cables, so it's a digital connection. All of my music stations sound CD quality. Maybe you have a bad connection somewhere.