I'm not sure about FM synthesis specifically, but I definitely know that its audio was being generated using the Saturn's sound chip in some capacity (with the exception of a single, 9-minute track), while the PC version uses the standard Red Book format throughout. However, from what I've read on the subject it seems the CD-ROM edition has quite a lot of clipping present, so naturally this wouldn't be the most preferable source for creating an unofficial soundtrack. On the other hand, emulation of the Saturn isn't yet perfect and recording its songs through an actual console hooked up via capture hardware of any kind would result in some artifacting, though I guess with a little effort this would be easy to reduce. Unfortunately, with both developer Zyrinx and publisher Scavenger now long gone, it's unlikely we'll ever get anything superior... unless someone could persuade Jesper Kyd to finally give this game's music the treatment it deserves, that is! Come to think of it, perhaps we could also ask him for a higher quality copy - or even reproduction - of the piece he composed for that impressive 32X video from around the same period, including elements later realised in Scorcher and AMOK? If you've never seen/heard this, here's a link:
Whip Ass Gaming: Zyrinx 32X Demo Tape - YouTube (
http://www.youtube.com/watch?v=F96yVYxNWPI)