LC stereo is a tool comparable to PS in the fact that it converts mono to stereo (or attempts to do that).
LC Stereo is a set of simple filters, that can only be turned on or off in the bitstream. PS on the other hand can be carefully controlled by bitstream parameters.
LC stereo works in the time domain, PS in subband domain.
DRM used to have LC Stereo, but in the latest versions of the standard DRM uses PS (but not the same as MPEG-4 PS)
Edit: for the interested people:
http://www.audiocoding.com/lc_stereo.mThere is 1 control parameter BTW, lc_stereo_mode, it can have 3 different values.
Oh yeah: this Matlab script sounds crappy because it doesn't save the filter states between frames, thus you'll hear cracking sounds on frame boundaries.
Menno