while i really haven't worked with, or even heard a setup with a 360, it should definitely not sound like crap. using a flat eq in the 360, your audio should sound close to stock.
if you are using the eq on the ipad, turn it off, you can also try lowering the volume on the ipad to see if that changes the quality of the audio(or, if it is really low, raise the volume). the reason for this is that the ipad might be capable of a higher voltage output then the 360 can handle, or the ipad might be pushing its internal amp too hard and also causing crummy audio to come out.
another thing to check would be the programming on the 360--there might be some level adjustment that needs to be done.
also, what are your gains on the amp(s) set to?
just fyi: i ran a ipod/crossover/amp setup for 3 months that sounds only slightly worse then my current computer controlled setup-- but both were way better then the stock hu..
My 2001 Mitsubishi Eclipse GT:
"The Project That Never Ends"
more projects then time!
Led Skyline Tail Lights--100%
High Power Led Reverse Lights--100%
Led third brake light--100%
Led front turn signals--0%
awesome install man, i've been looking all over the internet trying to find a tutorial.
have you posted one anywhere? i am really wanting to do this install in my 07 GT.