The most expensive thing in music production are instruments - I mean VSTi plugins, and you can use them even with open source OpenMPT tracker. Soundfonts or VST effects also can be run with OpenMPT.
You may have noticed that the sound quality of music trackers is weak, but if you use VSTi, you will get very good results. Of course, if you have FruityLoops, you don't need OpenMPT.
There are many free VST plugins, for example: http://smatni.tripod.com/safwanmatnivstplugins/
With a large library of plugins you will not have to worry about the sound effects for your games.
I have HipHop eJay from a magazine disc, but I never used it - this is only Mixer or something.
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