Also, do you know of any competition for such a product?

Well, VirtualDub (a freeware video editor) can load .bmp or .tga image sequences and then play them at a specified framerate in a window. It also lets you load soundtracks in .wav format, apply filters to the video, and then save the finished animation to .avi format. A very useful tool for animators on a budget.

However, it doesn't readily read .png, .jpg, or other popular image formats, can't play stuff fullscreen, and you can't set the playback to loop. And it's Windows-only. No Mac version.

What sort of features will the Lite and Pro versions of Frame Monkey have?