Well we tried a few things tonight:
I replaced and relocated the the traxxas reciever with another traxxas reciever and the result was the same.
I then put three ferrite rings on several different wires (ESC-Reciever wire, motor wires, and sensor wire). Same result.
I then put my 2.4 Spektrum on it, and that ran good.
So this brings up serveral questions:
1) Is this an expected upgrade for people when they purchase one of these? Most of us (the sick ones on the dark side

) already have them, but there is a large population of RC'ers who save avery penny just to get this $300 piece of speed and justifiably cant afford to drop another 300 on a 2.4G radio system. I've run all of mine with the stock TQ-3 system, with no issues - is it a random thing?
2) I found one solution to the issue (2.4). I didnt find the actual problem. Does anyone have any experince with 75Mhz FM? I'd like him to be able to try that before looking at the 2.4G stuff. I know just the difference in AM to FM radio (yeah, the one in your car!) is huge. Maybe this is a better/cheaper solution.
NovakTwo, I know question 1 is kinda putting you on the spot (if you choose to respond). My intent is to get a feel from the members here on this, but would also value your feedback.