Try this: go into the setting for the keyboard and turn off touch sounds (or whatever your particular keyboard calls it). I'm guessing this is separate from the Android settings.

Hi Jona!

Yep, it's 3.2.0.5.

My car stereo doesn't display the name, it's just the crappy stock stereo that I've stuck a bluetooth receiver into the aux input.

At home, I play the same station on my desktop with Winamp and haven't had the song name problem ever.

I'll keep an eye on it though! Not a huge deal, just nice to have. :)

Thanks Jona for the thing about this being a Nexus 7 problem. I did some digging and one fix that's worked for some is to turn off both touch and screen lock sounds in Settings (Android settings, not Xiialive). 

I tried this and it did work for me so I'm happy. :)

I read the links, that's good to know about bugs. 

All I can add is that I'm actually having no problems when playing via the internal speaker, it's only when I am using Bluetooth (in my vehicle) that I get the weird stuttering sound.

I know this is a few months old but I just want to add that I am getting this as well on my Nexus 7 (2012) when output is through Bluetooth. :)