I just posted LAME 3.12pre3. It has the first reasonable VBR tuning:
VBR will now increase OR reduce the bitrate to find the smallest
bitrate which has "over" <= allowed_over, as Gabriel suggested. It is
modified slightly in that frames with short blocks have a specified
minimum bitrate. (I added this after testing castanets.wav: the
pre-echo frames can still sound bad even if over=0. )
The default minimum allowed bitrate is 32kbs, but it can be increased
with -k.
The default setting (-V 4) seems to produce files only slightly
larger than 128kbs.
Mark
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