Quote Originally Posted by SadieKate
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.

Front of knee:
seat too low (raise seat)... seat too forward (move seat back)... climbing too much (reduce climbing)... big gears, low rpm (spin more), cranks too long (shorten cranks)

Back of knee:
saddle too high (lower saddle)... saddle too far back (move saddle forward)... floating pedals (limit float to 5 degrees)

Page 214 of Arnie Baker's "Bicylcing Medicine"