i think i figured out the problem. i am getting power from the cig lighter for the myfi. when i disconnect the power to the dock the noise goes away. so they problem is the power is dirty. i think i will try to tap into the lilliput since it goes to the opus. i tried using an mp3 + external sound card i still had the same problem.
and a bit off topic on media engine their is no way to mute the lineout until you click on the fm-xm icon. since some other front ends have that option. So to fix that all i hit was mute in the properties of the sound card for line in and media engine automatically unmutes it when i click on fm-xm radio. so that works out awesome