Shake chicken pieces in bag with flour, salt and pepper; brown in butter and oil. Place browned chicken in 3-qt. casserole dish. Combine orange juice with vinegar, sugar, basil, and nutmeg, and pour mixture over chicken. Cover and bake at 375 F for 1 hour and 15 minutes, or until tender. Baste often. Then place peach or apricot halves between chicken pieces, baste well, and bake uncovered for 15 minutes longer. Serve over white rice.