Is there an AM FM radio app for Android?
Yes, there is an AM/FM radio app that can be used on the android phones like TuneIn. This application allows one to listen to over 30,000 AM/FM stations. You can get more radio apps on http://radio.about.com/od/pdasipodscellphones/qt/Software-Apps-for-Receiving-AM-FM-Internet-Radio-on-Android-Phones.htm.
Tune in radio.has all kinds of stations.
Spirit FM Radio is the only good real FM Radio app that I know of. It doesn not use internet streaming. It costs a bit, but if your phone doesn't have an FM radio, it's worth it. You can find a free version on xda-developers too.