Ummm, I always understood frequency modulation to be modulating (i.e. changing) the frequency. :-P Anyhow, I'm just writing a simple set of PC speaker emulation routines, so a small sine wave sample and some appropriate writes to AUDxLC, AUDxLEN, AUDxPER, and DMACON should be all I need. Each of the audio channels can be used to modulate the next higher channel (except for channel 3, which just gets disabled if you enable modulation).
And for chip tunes, some creative use of sine, square, and triangle waves along with frequency and amplitude modulation would be in order. The synthesis would come from mixing the waves to produce recognizable instruments.
Trev