> I don't understand this? Did the physics change, or the human ear/brain?

No.  They did not.  But the research that the psychoacoustics most
encoders used is most likely wrong.  Monty has spent a lot of time
researching psychoacoustics for vorbis, and has found lots of new research
that showed that the old stuff was probably inaccurate.  

New models for understanding hearing will always emerge, and will require
us to rethink the way we are doing things.

jack.

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