The invention includes several techniques and tools, which can be used in combination or separately. For example, an audio encoder can encode information directly using coding processes that include a windowed overlapped transform, a selective multi-channel transform, scalar quantization and entropy encoding. The audio encoder can also encode information parametrically according to a parametric compression mode that accounts for audibility of distortion according to an auditory model. A corresponding audio decoder can decode first information directly and second information according to the parametric mode.