I accidentally moved a short audio clip to a MIDI track and ... whoah!! MIDI notes popped up!
The Melodyne automatically converted it to a MIDI clip.
Pretty neat.
Without any help -  it was pretty good.
Since then I've been playing with the Melodyne in warped ways - if you drag the notes pretty far away from the natural pitch you can get some interesting effects.
It seems to only work on small regions - it won't do anything in the minute-range.
Maybe that's a memory issue, but I have 16 GB.
 

Yeah, that automatic audio to MIDI feature is very cool.
 
Scott

--
Scott R. Garrigus - http://garrigus.com - SONAR X2 Power! - http://garrigus.com/?SonarX2Power
* Author of the Cakewalk Sonar and Sony Sound Forge Power book series: http://garrigus.com/?PowerBooks
* Author of the Cakewalk Sonar ProAudioTutor video tutorial series: http://garrigus.com/?ProAudioTutor
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Does it work on stereo files if I have full melodyne editor installed?  Have bought but not upgraded to X3 yet

Here is an example of a quick-and-dirty extraction of a clean strumming quitar stereo track.
I extracted the MIDI just using the defaults in Melodyne - no editing at all.
Then I put a plucked piano on the MIDI track with a distortion effect.
Then I mixed it to Left = original, Right = goofy weird stuff.
 
http://www.arachnaut.net/...o-MIDI-test-output.wav

PTheory
Does it work on stereo files if I have full melodyne editor installed?  Have bought but not upgraded to X3 yet

I upgraded to Producer. The Melodyne 'essential' works on stereo, but I think the simpler the track the better and easier the results. Only the major upgrade has polyphonic extraction as I understand.

So, I have Melodyne editor with DNA and I have found that the drier the track with only one instrument, the better audio to MIDI conversion takes place.  It is quite amazing and I really like the speed in which you can do this with X3 (vs doing it outside of SONAR and then importing the data).
 
I do know that I need to go to school on how to use Melodyne better... perhaps one of those video classes you see all the time.  It is quite complicated for me to grasp all the commands and what exactly they do.
 
Jim

Eli Krantzberg's video is worth picking up.