The FT-980 is still a great rig ... usually very repairable. IMHO, if we could fix the CAT/panel lockout issue and add a selectable roofing filter it would be superior to many DSP radios.
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I had the exact same symptoms in mine once: there are several things that can cause this however. I have a theory (a common cause in fact), but want to ask some questions first.
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So, first a few questions:
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1. Listening to the "static" level, is the background static significantly less on USB/LSB (LSB for 40M) than with FM (w/ SQL off), AM, & FSK?? Or is static the same, and it is just signals that appear reduced? Let's find out if this is purely "Mode" related.
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2. Putting it into "GEN" mode, can you tune to an AM modulated signal somewhere and see if you can hear AM fine?
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-Mat Breton, N8TW