Can I use the chip linked below to do FSK demodulation with the arduino? I've gathered from reading about other FSK demodulator chips that I could likely hook it up to the serial rx pin on the arduino and then read data at 1200baud. Does anybody have a recommendation for a good FSK demodulator chip?
That is the standard choice, and a good choice. Many years ago (don't ask) I build a radio teletype demodulator with that chip. It was used for ham radio RTTY over HF and VHF. Now, such things are nearly obsolete.