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+1 on the brilliant scenery and drives south of Munich.
Oktoberfest in Munich is actually in September. This could be good or bad for you as it will be crazy and crowded. If you want to experience the real thing, nothing beats Oktoberfest in Munich, I did it once, never again but I'm glad I did.
Hofbrauhaus is touristy but again fun to visit once. I prefer the Paulaner im Tal myself.
I enjoy just spending a day wandering around the Viktualienmarkt and Marienplatz, tasting the wonderful Bavarian street food and people-watching in the beer garden.
As far as stuff goes, you can find nice knives and leather goods that are tough to find in the US. My experience with fine watches and other higher end stuff is that it's not really any cheaper there.
Have fun! Frankfurt and Munich couldn't be more different. Frankfurt is a go-getter, dressed up, business oriented town, Munich is much more laid back, more of a party town IMO.
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