It's pretty straightforward if you know what you're doing. We did dozens of these conversions back in the 80's and 90's.
FM'ing the transmitter is the easy part. You just need a source of low level audio preset on TX only.
Most radios enable the speaker by grounding one side of it on RX - no ground on TX = audio on TX only.
Just connect this point via a preemphasis network (a fancy way of saying a capacitor and resistor in series) to the VCO control line to transmit FM.
Receiver is a bit harder. You need to add a small circuit like this to decode the incoming FM:
The hardest part is switching the FM in and out. Best done with a 4 way switch to change AM/USB/LSB to FM/AM/USB/LSB.
You'll need a schematic of your radio to do the wiring mods unless you are a qualified radio expert...
Easier to forget about the last part. Buy an old AM set for $5 (or get one for free from the kerbside hard rubbish collection / local rubbish dump).
Do a permanent conversion to FM, nobody used AM these-days.
Easier still: Buy a "10 meter CB" that can be easily modified (cut one diode / join one wire / etc).
26 to 30 megs AM/FM/SSB / High power pirate pleasure for $150 to $300 on eBay :-)
Hey, converting a CB or using FM on 27 megs is illegal, so why not go the whole hog?
Now for the hardest part: finding someone to talk to.
Here (Sydney, Australia) one can listen for hours or sometimes days without hearing anyone on AM or SSB, let alone FM.