Okay, I fixed it! I restored my phone "as a new phone" - NOT FROM BACKUP! It now has a range of at least 30 feet! Before, it had a range of about 4 or 5 feet. It also sounds clearer.
When you restore "as a new phone", it still restores all your data. You just have to reset all the checkboxes in the tabs in iTunes. Also, you will have to rearrange the icons on your phone (which you can do in iTunes) and reset some of your prefs. in the settings and your favorites (phone numbers). Other than that, it syncs up everything, including your apps.
Sorry, Tried all that...NO Fix.
WHERE WE STAND:
1. Iphone 4 has bluetooth Muffled sound to Incoming calling party, outgoing calls
are for most part ok. When connected, quality and range of audio is very
reduced with minimal performance. Bluetooth device drops on and off while
paired.
Trouble pairing some devices that work fine with other phones and cars. Stereo
headphone devices range, quality very reduced for various makes/models.
2. Problem appears to NOT be any single make/model of bluetooth device.
3. Attempted Fixes:
A) Soft reset of iPhone4 under settings....No help.
B) Hard reset of iPhone4 -Holding Home and power button at same time..NO Help.
C) Complete Reset of iPhone4 with iTunes....No Help.
D) Switching bluetooth On and Off while on call....No Help.
E) Removing bluetooth device on iPhone (ignore this device) and re-pairing
device as new....No Help.
D) Switching from speaker to bluetooth to iPhone to bluetooth....No Help.
E) Installing insulted iPhone cover, sleeve....No Help.
F) Contacting Apple support with trouble ticket MANY Times....NO HELP.