So I'm sitting here next to my radio alarm clock listening to my iPod (2nd gen nano) and I'm hearing this faint background noise. My music is playing but there is a radio station that I can faintly hear in the background. I know I'm not going crazy as my father is here and hears the same thing.

What the fuck!?!?!?!?!?!

Maybe there is a radio on in another room. Are you using an fm transmitter btw?

Signal attenuation, or crosstalk

try using different headphones, they may be acting like an antenna