Microsoft's GarageBand called Monaco

Taking a page from Apple's playbook, Microsoft is preparing a new application for creating music in the same vein as GarageBand for Mac OS X, according to the Microsoft Watch newsletter. The program, code-named Monaco, would be designed specifically for Windows Vista and take advantage of the operating system's Avalon user interface framework.

Sources say Monaco is targeting a new generation of content-creating consumers that Apple has attracted through its iLife suite. However, it's not clear how Microsoft will release Monaco -- whether it will be bundled with Vista or offered as a download like Microsoft Max. Microsoft Watch reports that the program will also take advantage of new search technology to locate audio clips.