  We examine magnon and orbiton behavior in localized O$_2$ anti-bonding
molecular $\pi^*$ orbitals using an effective Kugel-Khomskii Hamiltonian
derived from a two band Hubbard model with hopping parameters taken from {\em
ab initio} density functional calculations. The considerable difference between
intraband and interband hoppings leads to a strong coupling between the spin
wave dispersion and the orbital ground state, providing a straightforward way
of experimentally determining the orbital ground state from the measured magnon
dispersion. The near degeneracy of different orbital ordered states leads to
stacking defects which further modulate spin-fluctuation spectra. Proliferation
of orbital domains disrupts long-range magnetic order, thus causing a
significant reduction in the observed N\'eel temperature.
