I think I have that problem, myself. I don't have any hearing problems when tested, but if I can't see the mouth moving, I have a hard time making out what people are saying when it's noisy. I don't lipread, but somehow it helps to be able to see someone talking as well as hear them.

Ultramarina, I had your DD's problem in algebra in high school -- the teacher played the radio and it drove me nuts. Of course, I'd go home and blast the stereo while I did my homework -- but I think it was something about unfamiliar music (trying to listen to hear the words, unconsciously) and talking on the radio, that just didn't work for me. Music I already knew would just go right through without causing a disruption in my brain.