For those interested, I added some text describing some of the 
algorithms in GPSYCHO.  

http://www.sulaco.org/mp3/gpsycho/gpsycho.html

there is a link on there talking about the various stereo modes
and what we have to do to get true jstereo as used in AAC.  
(and probably FhG's MP3 encoder).  

I also wrote up a description of the algorithm used in outer_loop.
This includes why (I think) the ISO outer_loop produces very bad results
and why amplifying scalefactor bands in the way described produces
good quantizations.


Mark














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