I use a Polar 720 with wireless apeed and cadence. I train about 6 days/week, in Manhattan during the week, on Long Island on weekends. Many things cause false readings: Unshielded powerlines, and certain types of alarm systems the main culprit. For instance, if I'm training in Central Park in NYC, the ride to and from the park is loaded with garbage readings (Speeds in excess of 60 mph, cadences in the 190s and other fairy tales) However, once inside the park, the data is always perfect. The ride home is equally fraught with dirty data.
In suburban areas, like Long Island where I ride on the weekends, there is much less interference, except when riding through very wealthy neighborhoods, where the alarm-system errors creep back in. You get to know which houses throw off your readings, its always the same ones.
Finally, I recently discovered that power-generating equipment can also play havoc with your data. I rode through a park where there was a very large holiday lightshow being erected. Every time I passed one of the portable generators, it shut off my HRM.
All of the above is a bit of a hassle, as I have to then go back and error-correct my files before e-mailing them to my coach. However, I think that the benefits of using the 720 for training easily outweighs these annoyances.