your experiences pretty much sum it up - they lie, distort, fabricate, and omit to suit their story needs, and it is the RULE, not the exception.
Here in Milwaukee I've heard stories from former public officials that the newspaper would hold a file of quotes for days, weeks, months or longer and later "timeshift" them into current news stories to provide point-counterpoint. Sometimes entirely out of context.
Once when confronted about it, the editor confirmed that this was standard and accepted practice.
An example:
Kitten abuse on the rise
11/14/06
Kitten abuse is on the rise.
"Something must be done to stop this" say kitten advocates.
"We don't feel that kitten provide any positive benefits to the population" said the mayor.
Original context from 5 years prior:
"Can kittens be used therapeutically to calm racial tensions in the prison population?" - reporter.
"We don't feel that kittens provide and positive benefits to the population" - mayor.
Not quite the exact incident, but the real details were equally blatant.