Actually, the Droid's Bluetooth WiFi chip MAY have an FM transmitter/receiver built into it. Although unmarked, it is assumed by many to be the TI WL1271, which does have an FM transmitter/receiver. No Android software has so far accessed it, though, but with the phone having recently been rooted it may only be a matter of time before someone unlocks that little goody. For now, you will need a separate device, but that may not always be the case. Every week it seems some new feature of the Droid comes into focus, and its versatility is astounding.