The experience I have with mine (2 months old set) is that radio is stereo,
but the stereo decoder kicks in only with quite strong signals. For signals
of that strength, the quality of the stereo sound is very high, virtually
without noise. However, I would have preferred stereo reception of even
weaker signals, after all I could always switch to mono if I didn't like the
noise...
Personally I live in one city and work in another. In the city where I ive,
stereo reception is hard to get. In the other where I work, stereo recepion
is very easy to get (after all, I work in a metropolitan area).
For what concerns the problem of the auto-search... mine seems to work.
However sometimes I do experience some problems of this kind when the signal
is not very strong. It might even be that the signal is too strong (causing
saturation and intermodulation phenomena), but I don't think that this is
your case, since you can't hear stereo sound.