Modules can be installed in the same way they can in xbtit, the blocks aren't encoded so you can add menu links for installed modules easy enough.
Unfortunately there are not that many Module based hacks but I recently converted my Staff Page hack to a Module as an example on the xbtitFM support forums and one of our subscribers (cdx1) has converted several other hacks to Modules and I'm sure there will be more to come in the future.
There are actually quite a few general modifications that can be made to xbtitFM despite the encoding, the subscribers have posted quite a few hacks that work on xbtitFM in the customization section of the support forum.
As to your own customizations, it would depend on which files you need to modify.
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