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Music & Sound clips

There are only two reasonable ways how to get quality music for your applications:
- Make your own :-)
- Use royalty free music

All other ways are illegal or expensive.

Create your Own -Wave
The best and fastest result without really playing music is using prepared wave loops and some good Loop editor - the result is one long wav file in ambient/techno style..not bad for a background.
To buy a good Loop editor doesn't have to be expensive - and it is not as bad investment if you have kids - they will love it.
Magix Music Maker is one of them. Look at the Music Maker V2000
Magix also sell few $20 CD's full of loops - they are free for personal use.
Other simpler soft: Maestro (former NewBeat)
The best but more expensive is Acid from SoundForge.

Where to get good loops:
SoundForge license free $59 (very good loops - but I tried to order one CD and the final price was something like $150 to Canada - a really expensive S&H)

Create your Own - Midi
I am still not sure about using midi in multimedia - the quality really depends on users sound card and very often your masterpiece can be turned into junk.
Here are some nice Midi editors. They also support Wav files:
Magix Music Studio
Evolution Audio
However you can get zillions mid files from Internet and using the classic ones will not bring you into legal problems.

Create your Own -Mod files
Mods are midi files with embedded wav loops for each instrument. The mod player is mixing loops in real-time using pitch shift and effects. The result can be very interesting but very 'Mod like' (Remember Amiga?)
MMB will support OctaMed format from version 3.1

Use Royalty free music
The best way is to buy a royalty free music collections.
Be aware of the quality - the $10-$20 ones in the computer store have very-very poor quality - better ask your kids to push few buttons on their keyboard.

Corel has very nice selection Stock Music Library - 10 CD's of royalty Free music with good quality for its price.

Other sites selling sound clips:
Sound Ideas