Alright, after looking at the service manual it does appear the G2X has the hardware to actually receive FM radio. However this specific aspect of the hardware (BCM4329) is not wired up.
This explains why no audio can be heard when using the o2x app. unfortunately this also means that the FM radio has been disabled on the hardware level and cannot be fixed with software.
Last edited by slycog; 25th June 2012 at 04:37 AM.