Thanks to everyone for the guidance, samples, and suggestions! I've compiled all the info into the following results:
I posted the code for this under vgmTest.ino at
http://hackaday.io/project/13361-sega-g ... ynthesizer
https://youtube.com/watch?v=8vRRA7wkYX8 A short video of the current state of the project.
Can anyone can help me figure out what that "blip" at the beginning is? I have a feeling it has something to do with the parser, so I took a log of everything the parser was doing, careful it's a 3MB text file: soniktech.com/putty.log
Here is the file I am using for testing:
http://soniktech.com/SONIC.VGM
It seems that the Atmega1284 chip I chose for this is too slow to keep the 44.1KHz DAC on the YM2612 fed, even when running at 20MHz. Reading from the SD card is slow too, and I doubt I'll have the memory to decompress vgz files, so I'm switching over to a higher power Arm Cortex chip. This should give me the headroom to expand the code as far as the VGM format requires. That way the hardware won't have to change if updates come out.
I'll keep you guys updated

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