This circuit uses a small Microphone to capture the sound and some transistors to generate Radio Waves that can be picked up by a FM receiver like a car stereo.
The coil is made with about 9 turns of wire, use a pencil to get the right diameter for the coil. The capacitor with the arrow is called a trimmer capacitor, it has a small screw to adjust the value, we'll use it to tune a certain frequency or station to transmit on.
How it works:
From left to right, the first part is the microphone and some resistors to get it working. Next we have a Capacitor and the first transistor, this amplifies the sound from the microphone so that it can be loud enough to work with. The last part, there is a transistor, a coil and some capacitors. This part generates the radio waves and combines them with the sound from the mic to transmit it thru the antenna.
Make a Simple FM Transmitter
(click to enlarge)