It is in the sounds folder, builds and at the bottom. Mine only has 5 in list, but 39 songs do exist. I never have music on in any games, so ....
The background music doesn't play in the order that it is in a Windows directory. If there is a text/Music.txt file, then the music will play in the order placed in this file. The max number of songs in this file is around 40 IIRC. More than this, and they won't loop back to the first song once the last song is finished.
I've started playing this again, and i'm not sure what to do with home guards, and whether i should build them or not. I'm playing as Japan and i have a home guard and a Japanese infantry in every city on the island, and i have 2 Japanese infantry in all of the smaller islands and in Korea. Where should i build them?