I have the "Tunes" option turned on yet i do not here any background music in the game? Does this option refer to music only in some parts of the game or should there be music in the background all the time?

Um...I wasn't aware the game had background music and I never saw the "Tunes" option. Can you explain where you found it?

Aside from the intro, character generation, and some short music samples during certain encounters, these games don't have music.

You might be thinking of one of the console ports. The PC version doesn't have background music.