As menno says, the BWT is not a form of entropy encoding. I've tried out the BWT in a few forms for lossless audio compression, however it is not really suited that well to audio. Even if one overcomes such hurdles as audio being 16-bit (versus text being 8-bit) which tends to screw up BWT's mechanisms (as the data is simply too sparse), the methods used by Monkeys Audio, Wavpack, La etc (various forms of adaptive prediction) simply compress much better.
One thing I have tried (somewhat unsuccessfully) but do want to further look into if I ever have the time is using wavelets for lossless audio compression. I think this might have some potential if done right.
And by the way jrj, Ghido is rather secretive about how Optimfrog works, however I don't believe he is using any form of QLFC (his BWT archiver) in it. Of course, if he'd care to clarify this that'd be great

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