I'm sorry I assumed that you are running Windows on your development box and that would be why GD doesn't find the font in Windows font folder.
I'm quite sure that you don't have to configure GD library in any way so let's look for other reasons that imagettfbbox() fails.
Are you are absolute sure that monofont.ttf exists in the path you specified, user that runs the web server can read it? Try something along these lines:
if (!file_get_contents('/absolute/path/monofont.ttf')) die('cannot read');
If on Windows try double back slashes instead of forward slashes - or vice versa.
Where is monofont.ttf stored and what syntax did you use when trying the absolute path?
Try downloading the latest version of GD library for your operating system (what is your operating system, by the way?). Did you compile it or got a binary? If compiled then try to get a package with binary instead.
I found that people reported problems if the file name contained a hyphen. Doesn't seem to be your problem though. Could be somewhere in the path?