I use the FM antenna adaptor with my Sirius radio and Sony head unit.
The reason the FM Direct interface was created was because a few years ago the FCC made satellite radio companies tone down their FM modulators because they were too powerful and interfering with other peoples radios nearby. What the FM Direct adaptor does is break the connection between your car antenna and the radio using a relay, so that when your satellite receiver is on the only station your car radio can pick up is the one that your modulator is broadcasting on.
To put it in simpler terms, imagine that every time you turn on your satellite radio, a little dashboard gnome reaches up and unplugs your antenna from your radio and plugs in your satellite radio in it's place. Now the only signal going into your radio is the signal from your satellite receiver. When you switch back to regular radio he switches everything back. When you're not using your car, he works in your refrigerator turning the light on and off every time you open the door.
Anyway, the device is $20 and works like a champ. I highly recommend it.