Jason wants to know if modern phones can stream FM radio. Leo says that some have that feature, but it's not in hot demand in the US. So his phone may not have it if it's bought in the US. If he's buying them from an international vendor, he'll have a better chance of getting a phone that supports it. If the hardware supports it, then he could use a third party android app to do it. But not in an iPhone. He'll likely have to root his Android phone to run a separate ROM. Leo likes Cyanogen Mod.
Leo recommends going to XDA Developers forums and input his model phone to get directions on how to root it. The older the phone, the easier it will be. He'll want to put a new boot loader on it, like Cyanogen. He'll also find what mod will best support FM radio for it. The chatroom found the instructions for rooting Jason's specific phone here.