I see this app is coming along nicely. I will test the region thing in a bit, but something I noticed is that the FM-Radio-wide package doesn't listen to what your region is set to. It's hardcoded to a specific region that enables the entire 76-108 band. I lack the skill in either of these programs' languages to give you a detailed analysis myself, though, and definitely don't know if there's a way you can do the same thing from within the parts of the code that's yours - sounds like you may have to fight QtMobility or whatever on it.

However, here's the page where the developer of the other radio app mentions (in the 'changes' part) what he set to what... I don't know how much this helps, if any: http://maemo.org/packages/view/fmradio-wide/

Either way, keep up the great work.