I suppose I should have looked at Wikipedia first! They have all the info and yes, the fruit is edible:

>>>Nutmeg is the actual seed of the tree, roughly egg-shaped and about 20Ð30 mm long and 15Ð18 mm wide, and weighing between 5 and 10 grams dried, while mace is the dried "lacy" reddish covering or arillus of the seed.<<<

and...

>>>The pericarp (fruit/pod) is used in Grenada to make a jam called Morne Delice. In Indonesia, the fruit is sliced finely, cooked and crystallised to make a fragrant candy called manisan pala ("nutmeg sweets").<<<

Nutmeg article on Wikipedia with pix