Hey guys,

It's been ahwile.
I think I solved this one right before AMoL came out.

First, you have to realise that I thought I had found Demandred's hiding place (again.. this was pre-AMoL). To be honest...I still think I found him, but that Brandon couldn't and came up with cop-out, crazy Bao-pao.

Anyway.. here are the link to the two theories. I would read them in this order. First, let me try to convice you that Demandred was hiding as Amel. Then let me show you how Verin pointed RIGHT at him, directly after the Manor Attack.

It's a bit of a long read, but we all love WoT, so we love long reads.
Anyway... here are the links:

http://www.dragonmount.com/forums/topic/75864-miks-warp-demandred-isclick-to-find-out/

http://www.dragonmount.com/forums/topic/77583-mik%E2%80%99s-warp-solving-the-puzzle-of-the-trolloc-attack-on-lord-algarin%E2%80%99s-manor/

Cheers,
Mik

Edit: Tried to fix the links. Can't get them to work with either the Markdown nor with the HTML format. You're going to have to copy/paste. :/