Currently Being ModeratedJan 29, 2012 11:35 AM (in response to Seattle Web Guru)
Actually, your iPhone is not streaming from iTunes Match. The service only streams to the latest Apple TV and to computers. So what you are playing has to be downloaded to the phone in the background. That said, it's doubtful that the problem you are experiencing has to do with Match.
if what you are saying is that the iPhone works fine when docked at home, vs in the car over bluetooth, it might be your 3G connection. If you are trying to play music in the car that you haven't already played/downloaded to the phone, it's bringing that music to the phone in the background and that could cause some playback problems. At home if you were to do the same thing, assuming you have wifi, then the phone is on wifi which is a lot better.
If this doesn't help, give us more info. on your problem and we'll try to help.