I've tried a few different radios recently:
Intaride 803 PMR radio, with built in FM radio. You can mount it on handlebar so easy to control, but reception varies wildy depending on where you are in the UK, and what the local obstructions are. Ie on the M3 motorway the reception is clear and good, but riding though towns or through tree lined roads, it went from poor to rubbish. It was also a bit of an eye sore on the handlebars, so I moved it to under the seat which means that I cant press the buttons any more, so cant use the FM Radio.
Mobile phone with FM RDS radio. (HTC Touch HD). Mounted in RAM Aquabox. easy to use controls but screen almost whites out in bright sunlight. Connected to Autocom via normal 3.5mm stereo jack plug, which also serves as the aerial. Same reception problem as above, even with RDS, if there is insufficient reception to start with it doesnt really work. Tried to boost the aerial using a 3.5mm socket doubler, with the supplied headphones plugged into one socket, and the autocom lead into the other. I had hoped that using the proper headphones which gave good reception sat at my desk would help, but on the bike, in poor reception areas, it didnt make any difference. I also tried using an internal FM antenna lead (about 3 metres of flat copper cable in a T shape which sometimes comes free with hi fi's) but that made no difference either.
A cheap as chips (£2) pocket sized FM Radio from a supermarket started off with very good reception, but it was a bit fiddly to control, and would often just drop stations randomly - again down to the aerial I think.
By far the best FM radio I've every used on a bike was the one built into a 1200RT I test rode once. Easy to use buttons, clear display, excellent reception - proper antenna... But only fits on a RT or LT
I've not tried that ebay one, but I think its going to be all down to the antenna again.
Hope this helps,
Mike