Receiver overloads when receiving a strong signal, resulting in distorted audio.
In addition there may be a warble in the modulation when transmitting (which might be described as a popping sound during transmit).
ACTION: RF is bleeding into the receiver front-end. Apply the following fix:
Install a 1uF electrolytic capacitor across C607. (From C607 to ground)
1uF electrolytic capacitor: Cobra part number 020-007
NOTES: When receiving very strong signals, it still may be necessary to turn down the RF Gain.
Scrape to expose the circuit traces as indicated above. The large copper area is ground.
Solder the capacitor as shown. Be sure to observe polarity. Put some glue under the capacitor so that it cannot move.