I greatly appreciate the helpful replies and hopefully you all don't feel like I am wasting your time, but here is what just happened.
It was last weekend that I tested and just didn't get around to posting today.
So, after posting and the first reply suggested to use the USB, I connected the iPod via USB and that didn't help.
Tried another model IPod and that didn't work either so i opted to try to see if that would connect via Bluetooth but the AVR picked up the original IPod instead and for some reason it sounded better.
Called in wife and she ask what I did changed to which I said "Nothing".
Then I inserted the same CD as last week and that sounded very good too.
I have no idea WTF changed or what button I hit but it sounds much better than it did last week.
Is possible to just delete this thread???