FM: frequency modulation: modulation of the frequency of the (radio) carrier wave
NO Internet radio can be called FM. No Internet radio requires hadphones to be plugged in to work because it can play through speakers. FM radio requires an antenna and hence the headphone requirement.
Maybe the manual is wrong, but I doubt it is.
I agree with Szadzik.FM radio means no internet/data consuming radio.
may be the droid 2 has a FM radio.moto hasn't worried too much on their document release.
