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There are two main changes in the C,Crane FM Transmitter 2 compared to the earlier C.Crane FM 1.
Several published reviews have noted that a detectable noise floor can be heard in the FM1 when listening closely to the carrier, which is gone from the FM2.
And while FM1 has a single red LED that flickers to display overmodulated sound, the FM2 has 2 LEDs, the green lights during average audio and the red showing overmodulation.
Other than those two differences, the two transmitters sound exactly alike and have the same range.
Using Stereo Tool or any good processor for raising the average audio level, the modulation heard from an FM1 is excellent and the audio will conceal the relatively low level of the noise floor.
Doing A/B comparison, FM1 on 89.5 MHz driven by Stereo Tool and FM2 at 89.9 MHz carrying unprocessed audio, the FM1 sounds stronger and more dominant due to the diffence in audio handling.
The conclusion shows that the C.Crane FM1 remains a viable and useable transmitter and there is good reason to own one if it comes at a good price.