The antenna on my new 7600GR is very difficult to rotate, something
seems to be binding inside the case. Anyone know the cause and the
solution to this?

Send it back to Sony for repair - DO NOT USE A LUBRICANT!
See:
http://groups.yahoo.com/group/7600GR/
http://groups.yahoo.com/group/7600group/

Is it true that the new Degen 1103 has a 3" speaker and does the new
Passport review this model?

See:
http://groups.yahoo.com/group/kaito-de1103/