OK I've figured out something, but I don't like it...
QUOTE(funkyass @ Jun 24 2006, 02:57)

the point of album gain is ensure you don't really need to change the volume much between tracks in a specific group, rather than across groups.
Its more along the lines of saying you want to make a mix cd, and don't want to adjust the volume in your CD player between tracks, or listening to all of an artist's work in order by album release.
I agree with this part if by "groups" you mean albums.
QUOTE(pepoluan @ Jun 24 2006, 02:59)

RG does try to limit the peak amplitude. That would be normalizing. What it does is try to make the average effective (e.g. RMS) loudness the same.
I assume this is a typo and you meant to say "RG doesN'T try to limit the peak amplitude". Because you then say what it does (and that part is correct). I'm not sure if you've read all the above, but yeah I admitted I used an ambiguous phrase earlier on. I'm aware of the difference between RG (pure linear scaling of all frequencies) and normalisation (screws with the quieter audio information with respect to the loudest peak) and corrected how I was expressing myself.
QUOTE(funkyass @ Jun 24 2006, 02:57)

in order for foobar to do what you are expecting it to do, it would need to keep the album gain info for all the albums on a given playlist in memory rather than what it does now, loading the RG info on a per-track basis. Or scan all the files in a given playlist as a single album
This I disagree with! I don't get why you are saying this when we have already established that the album gain value associated with each album is supposed to scale their maximum volume (and as a result, all the rest of their dynamics AT CD LEVEL, not track level) to the same value selected in Foobar (89dB). Also, there is NO point whatsoever in scanning all tracks from sets of multiple albums, as if you use album gain on this set, you get the same differences between albums that you would get if you didn't use RG at all! And the track gains are exactly the same as if you scanned the albums individually. Because it will analyse and scale all the songs individually according to the quietest song and the hottest songs you have in your collection and calculate to reach the 89dB. However, here is the interesting (annoying to me) part: When scanning multiple albums as ONE album, as suggested by you, I can see that the peak amplitude reached by all the albums is now the same. This is what I wanted to achieve in my soundcard mixer. BUT, the albums which were quiet without RG use now sound definitely quieter than the albums which were louder without RG. That is because it is now calculating the maximum peak (and therefore the 89dB) according to those loud albums, and the quiet ones all get scalled down accordingly to match, nearly like they were just quiet songs on an album (where it IS the desired result, but here it isn't).
But this MUST be incorrect use of RG for two reasons:
1) The quiet albums STILL simply sound quieter compared to the loud albums. If you're using album gain, I believe that all albums should then have the same (via my ears and via monitoring output levels) max amplitude, and the dynamics of all the tracks within each CD remain, as they are scaled accordingly. But it doesn't. This is incorrect behaviour of RG since as stated by others in this post, it is supposed to make the average loudness of all the albums the same in album gain mode.
2) And this is the main reason I believe scanning multiple albums as a single album to achieve a "better" RG album gain is incorrect: this requires REscanning your entire collection each time you add a new album!!! That is absolutely rubbish and MUST be wrong. The whole point of that 89dB value is so that as you add new albums you can just scan them and the album gain will be based on that value you chose when you set up Foobar.
So yeah, the peak amplitude reach when scanning multiple albums is "perfect" when monitoring the output meters. It never goes above that limit. But more importantly, the sound levels to the ears are definitely inconsistent between albums, much along the lines of if RG wasn't being used at all!
No matter what happens, I don't intend to rescan my entire collection each time I add a new album. So, currently my best solution is that suggested by Lyx. I've set my overall Foobar output to -5dB to stop the albums which STILL appear to max out my soundcards digital output. I've adjusted my amplifiers volume to account for this, and I'll continue to use album gain. The albums which sounded too loud are now sitting around the -10dB when at they're loudest, as desired. The albums which were fine before now LOOK like they are coming out too quiet, but SOUND ok. It annoys me that the output monitor doesn't entirely match up visually with what my ears are hearing. I think someone said before that RG doesn't deal very well with some albums, after more investigation, I've found that in general, albums which have a larger dynamic range are the ones that are coming out with a hotter max volume. Heavy metal and stuff that probably has less dynamics (ie all loud) are the ones that are "well behaved" and don't go above that upper limit I like to see on the peak meter. Problem is, those CDs now sound a bit quieter. EG Linkin Park's Hybrid Theory (on average) sounds quieter than Madonna's Confession on a Dancefloor. This part really irks me. LP has an album gain of -10.x, and Madonna -8.x. I guess I've just gotta put it down to Foobar's RG calculations not being as accurate as I'd like. It's a LOT better than not using RG and albums playing at completely different volumes, I just wish is did it better (and I don't want to go manually adjusting album gains). Unless someone has any new ideas I think this thread as been run into the ground and I'm tired of trying to "fix" it. Thanks to all who helped me.