I don't hear any of the music either, but I DO hear the other game sounds.
I have a (new) Palm Tungsten E, and I installed Village Sim on a 256MB SD card with about 200MB free space. The game works great... I just don't have the music.
I DO hear music and game sounds with other games that are installed on the SD card. It's just Village Sim that I don't hear any music.
I wonder if it would matter if I try installing the music files to the main Palm device rather than the SD card. Well, I suppose I could install the game and music files to the main Palm device. Let me know if you want me to try that to see if it makes any difference.
I love this new game, BTW. Fantastic.