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When I worked at an install shop, I found a quick way to verify a grounding problem with the radio/antenna effecting the AM band is to put a piece of electrical tape over the outside (ground) of the antenna plug, and plug it back in the radio. If the radio dosen't work at all, you have no ground on the radio and it is grounding through the antenna wire. If it gets rid of the problem, then you need to inspect the ground for your radio and the antenna. After hours upon hours of work, if you still can't seem to get it to work correctly, you could leave the tape covering the outside of the antenna plug, but it will hurt your overall reception, even though it gets rid of the power interference in AM.
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