QUOTE(Justin Ruggles @ Jun 30 2006, 08:36)

There is a free LGPL AC3 encoder. It is part of FFmpeg. A while ago, I used the code from FFmpeg and added some additional features to create a standalone commandline encoder. It isn't very well tested at the moment and probably will only work on Linux x86, which is the only platform I have tested it on. I haven't tested multi-channel encoding either, but it should work in theory.
The FFMPEG encoder is very basic (following the F.Bellard tradition) , but might be a very valuable starting point. (and it's integer only, so it could be very interesting on some platforms)
In my opinion, it could be very interesting to create a cooperative project (like on sourceforge) around your command-line version.
I think that to attract potential developpers, you should have an interesting project and some basic tools. You already have the interesting project.
Regarding tools, some good basic ones would be:
*a command line interface (already done) to ease experimentation with the encoder
*a library structure could be a good "selling" point
*a way to conveniently analyse the encoding choices
Regarding this last point, some output regarding thresholds and bit allocation into a text file that could be further displayed using Gnuplot could do the trick. (it should be way faster than to write a graphical frontend in Gtk...)
With those points, your project could have a good starting. (although we never know)