1. What are the rules on using video game music in other games? I would like to state first that this is a non-commercial project and all other music that I am using falls under the creative commons license and all artists there in will be credited with their work.
2. Does having a donation button count for my project count as it being commercial? Because I am toying with the idea of having one on my website for it, but if it would make my project a commercial one technically that I will forget about it.
Generally speaking, the copyright owner in a musical work has the exclusive right to exhibit and reproduce it. Even though your game is not "commercial," many copyright owners object to such uses and will sue to enforce their rights. There may be exceptions or defenses to copyright infringement, but it may cost you thousands (or hundreds of thousands) of dollars to defend yourself even if you succeed. Do the smart thing and either pick different music or obtain permission.
Accepting "donations" for the use of your software is generally going to land you in the "commercial" realm, because the "donors'" sole motive in paying is to compensate you for your software, not to support a charity. Your mileage may vary but I wouldn't want to count on being able to qualify as a charitable case.
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