Well, I first suspected that it was a ground problem and started unpluging the power from anything else I had plugged into the same power strip as the AE and clearing other cables out of the way. But then I unplugged the ethernet from the modem to get to another power cable and the radio station disappeared. It doesn't matter where it's unplugged from, just as long as the modem is not connected to the router. This tells me it's not RF interference on the audio cable, cause it sounds fine once the ethernet is out. I wouldn't think Apple would have the audio out and ethernet in connected or unshielded enough to cause this kind of problem, but maybe not. I will try the ground loop isolator cause it can't hurt, but I really think it's something inside the AE or modem. And unfortunately optical is not an option.
I will let you know what the ground loop isolator does. And thanks to both of you for responding.
-Brian