I have been looking into this since I need to losslessly encode several 5.1 surround tracks. None of the lossless codecs available on the internet seem to have any form of multichannel decorrelation, only stereo pair decorrelation with M/S technique.
MLP (as used in DVD-A) has a multichannel decorrelation matrix, which should allow to bring 5.1 tracks down rather much.
Surround recordings generally have alot of information that is common for all channels, since sounds are usually panned into several speakers at once.
I have taken a look at the KLT transform for this purpose, but I don't know if the output from it would be suited for the type of predictors used in FLAC at least.
If anyone has done any research into this topic please tell me and the codec developers about it. I think it is time for the free lossless codecs to go multichannel!!!
Martin Saleteg
N i n j a F X