After playing with it for about two hours. I have some intial impression I want to share.
Aside from the bad batteries I found that the dial reading is not so accurate. For example, let say I want to tune into the station fm102.9 and i would have to turn the dial to about 103.1 to get the best reception. Not a big deal. Also, the headphone out on the back of the PAL has some problems. When I first plugged it in, I was only getting sound from the left driver. I had to play with the plug to get sound for the other side.
Moving on to the good things.
This thing is amazing at picking up weak signals. I can tune into stations that does not even exist on my receiver and those include stations that can only be tune into on a car stero with a 4 foot antenna. However, I did find that it does not pickup signals better than my car's stero. I think the purpose of this radio is to pickup weak signals caused by building structure interference. If a signal was destinated to reach your area then you will get the best quality possible. If you were out of the broadcast area, even this radio wouldn't help you.
About the sound quality. It seems the little speaker is doing a good job but certainly not enough to satisfy my ears. So I started using headphones immediately (Sony MDR-7506). In brief, it sounds very good with no audible hissing or static in the background. I am not going to comment too much on the sonic characteristic of the headphone output as it was equalized to work with the small built-in speaker. However, it still sounds really clean with a tad too much bass and mids are a bit recessive. But who cares about that, if you want superb sound quality, you can listen to cds.
I think I will just return this radio and get a refund for it. Maybe someday I will buy it again but get the Model 2 with the stero line-out instead.