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I have access to techicians and engineers who are well versed in the subject and may be able to work out some of our problems with their help
That would be excellent - any help you can provide would be appreciated!
I'm pretty sure that in most headunits, the antenna wire is used for FM while an internal loop antenna within the head unit recieves the AM. I could be wroing but I think I remember hearing that somewhere.
I haven't gotten to installing my radioshark in the car yet, but my plan is to set it up just like godraj described above. I'll use coax to go from the radioshark to the antenna input plug in my car.