KSH, knees are such tricky creatures. I have found that the book Bicycling Medicine has the best discussion of all kinds of knee stuff. This book is an incredible resource for all kinds of aches and pains associated with cycling. I don't have my copy here at work so I can't look up anything but I think you'd find a good return for investing in the book. The fact that the pain is to the side could mean more than saddle height adjustment.