I've been using a MP3 Player FM Transmitter with reasonable results played through an old Blaupunkt stereo radio/cassette, and it was a bit better without the antenna plugged in.....I'm no expert, but I believe with FM over very short distances the antenna can be absolutely minimal - in fact one chap I spoke to said a 'regular' antenna makes it worse because it will pick up competing weaker frequencies.
The MMC unit isn't an FM modulator (which as a side note are technically illegal because you are broadcasting music without a licence

). My understanding is that it is a simple head unit that you plug the music source into.