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They've been hard at work on this for quite some time now.. Usually the guys at xda deliver in a flash... This leads me to beleive the FM transmitter included is far from functional..
I think you're right on that one. The wireless chips used in phones (usually Broadcom chips) often have the capability to do FM transmission and reception, but the phone isn't necessarily engineered to do it. Just because there is a component to do FM, doesn't mean the power exists to transmit or receive reliably.
 
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