DS-Lite isn't using real FM for the MSX-MUSIC. I simply can't squeeze out enough emulation cycles to do that so it's just a very rough approximation. Only the DSi/XL/LL running at 2X the CPU (so not via an R4 or 'compatible' flash cart) gets the full modulation and that's where all of the improvement will come from. Some games on the DSi are starting to sound really good with MSX-MUSIC... some are not (Blade Lords with custom instruments is the most notoriously rough sounding right now). In the last couple of builds, I've completely separated the DS-Lite/Phat/Compatibility mode MSX-MUSIC from the DSi/XL/LL 2X CPU handler. Only the latter will get improvements at this time.
Also, in order to support Cart+Cart2 + Disk possibilities, the DS-Lite/Phat/Compatibility mode will only support ROMs up to 1MB in size (if you use 2 carts, 512K each). The DSi/XL/LL will support 4MB (or 2MB each for split carts). That means Lily's Saga is off the table for DS-Lite. I might try to find the extra memory someday to support the few really good 1.25MB games on DS-Lite/Phat but that day is not today.
Over the years, I've done what I can to keep the older DS hardware relevant... but the MSX2 with advanced VDP, 12 possible sound channels and big 8-bit mega-memories is right at the cusp of what that old girl can do.
Anyway... in the meantime, 1.3c is up and it has some really improtant changes for disk handling. You can no longer switch directories when swapping disks - it was causing all kinds of discontinuity problems. That should hardly be a problem for anyone - just keep your save disks in the same directory as the game you are playing.
Also, when you Save/Load a state, it will now auto-mount the last disk you had to prevent any issues with multi-disk games.
Writing disks is more efficient - and a bug has been squashed that could incorrectly write the WRONG disk (oops!).