THANKS for the info.
You are further ahead than I in this endeavor, as I am still in "thinking" mode. The classical music mentioned is a type of "stress" test for my ideas; if the display works for this music, it should work for most holiday music as well.
My current thinking is to use many more frequency "buckets". One way is to use the MSGEQ7 Graphic Equalizer Display Filter, an incredibly easy chip to interface to a micro-controller (uC). For even more buckets, an FFT algorithm seems to be the method of choice, as you have incredible control over the number of buckets and frequency range. Using another uC, you can do further filtering and control, especially if an RGB string is used. Seems like a fun project; I only need to find the time! 
Richard (from SoCal) 
Do you know how to program? Chances are after I build the base, beta test, and document the code, I am going to release this as open source.
Have u looked at widi recognition system?
This is a tool that takes an mp3 as an input and then changes it into a midi file. You are not allowed to view links.
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LoginIt was original written in 1998 , so 14 years old. I came across forum entires where they were going over the detection methods they use for beat detection and the fft they use to get dozens of channels out of music.
I tried their demo on different mp3s. some worked ok, some not so good. The issue is the timbre of the music that is all mixed together. Think of clarinets, flutes, trumpets, strings all playing together. Now try and detect the 3rd clarinet part out of that mp3, not quite yet.
They are making progress and i do foresee a time when it will be a great asset.
This takes me back 20 years to those boxes radio shack had to connect to your stereo so they would turn lights on to the beat of the music.
Your tool looks very promising.