Yes there is! Get an LR4 2010 or newer! I hate to say it, but I had the same issue on my 2003 LR3. My dealer replaced the mic twice, the "brain box", and something else that wa worth $1000.00 and took a week to get (under warranty). NO LUCK! I had an iPhone 3G, my wife had the 3Gs, then I changed to the iPhone 4. Same thing. Trade it for a 2010 LR4 and it took me 10 seconds to pair it and the problem solved. My wife has a 2011 LR2 and it sounds even nicer. I just didn't used my handsfree on the LR3, way too frustrating. I was able to hear fine, but I sounded just like you said, underwater.