The PANDA experiment at HESR will require the use of high-density internal targets. Pellet targets seem suitable to meet the various boundary conditions of the experiment. Pellet targets have worldwide been developed and operated by few groups from the Forschungszentrum Jülich (Germany), Uppsala University (Sweden) as well as the Institute for Theoretical and Experimental Physics and the Moscow Power Engineering Institute (both Russia). All these institutions will participate in the project. The main goals of the project are: 1) Design of the pellet generator for PANDA: Numerous experiments by the participating teams showed that the quality of the pellet beams is mainly determined by the process of splitting the liquid jet into droplets. In particular, vibrations from surrounding equipment may lead to longitudinal and transversal instabilities of the pellet flow. Thus for the PANDA pellet generator it is foreseen to use a vibration-less cooling method (using liquefied Nitrogen and Helium) which has been developed by the Russian groups. 2) Real-time tracking system: Precision experiments at PANDA require accurate knowledge of the interaction point in the circulating antiproton beam. Therefore a tracking system has to be developed that allows one to determine the speed and location of any pellet at any time. First developments - based on CCD and line-scan cameras - will be the basis for such a system which shall be further developed in the framework of the proposed project. 3) Software for the simulation of jet, droplet and pellet production: Systematic developments of pellet generators require the use of software which allows one to predict the pellet beam properties for particular target geometries and components. Such software has partially been developed at the Moscow Power Engineering Institute and at Uppsala, and will be optimized in the course of project.