  The measurement of the pion form factor and, more generally, of the cross
section for electron--positron annihilation into hadrons through the radiative
return has become an important task for high luminosity colliders such as the
$\Phi$- or $B$-meson factories. For detailed understanding and analysis of this
reaction, the construction of a Monte Carlo program, PHOKHARA, has been
undertaken. Version 2.0 was based on a next-to-leading order (NLO) treatment of
the corrections from initial-state radiation (ISR). In the present paper a
further extension of PHOKHARA (version 3.0) is described, which incorporates
NLO corrections to final-state radiation (FSR). The impact of combined ISR and
FSR on various distributions is investigated and methods are presented, which
will allow the extraction of the form factor, and even give access to inclusive
photon emission due to FSR. The dependence of the results on the model for FSR
is discussed and the impact of this contribution on the anomalous magnetic
moment of the muon is evaluated.
