I just hooked up my audio jack (the kit-provided jack is a mono jack, by the way, so left channel only if you plug a stereo plug into it) and tried out the Altair Music System (loaded via switch settings 1101.) I am really impressed... Back in my Commodore 64 days, I was pretty impressed by Commodore's SID chip and the various software packages designed to tickle it in ingenious ways; but here, five years earlier, the Altair Music System's ability to wring so much sound out of a single digital bit is totally mind-blowing. I'm wondering if the source code for the Music System is around anywhere, to see how they performed this magic.
I found that using TeraTerm and setting its "Paste delay per line" (found in Additional settings/Copy and Paste) to 150ms, I can reliably paste a .MUS file at 9600 bps without incurring the slowdown introduced by a per-character delay (which never really goes down anywhere near 1ms). Plus, by pasting the .MUS files directly, it's not necessary to ever leave the Music System via RET to paste a hex encoded music file, and then go back into it via EX 0 to score and play the tune. You can just go:
NEW
<paste a .MUS file>
SCORE
PLAY
And thanks to Chris for adding the audio tap to the 1.4 board. Instead of soldering wires from the jack to the board, I used a pair of left-over header pins and a pair of Raspberry Pi prototyping wires to improvise a plug/socket so the board wouldn't be permanently tethered to the case.