Video Game-y Music?

Hey All,

You guys probably know these guys:

http://www.videlectrix.com/

I believe they made the Trogdor game for Homestar Runner. Anyway, here’s some of their in-game music:

http://www.videlectrix.com/videlectrix_music.html

So I was wondering – how does one go about creating this type of music? Is it with external instruments, MIDI, etc.? All I know is Fruity Loops, and that’s not helping.

So, any audio wizards, please share your knowledge.

Thanks!
decisionman.