JAE,
Thanks for the clarification. I would like to read Yura's research on this subject. However, I am still curious about weron4u's original question: i.e. how far below the top flange is standard lateral bracing still effective? As previously stated, Yura has determined that bracing at the neutral axis is not effective, so is there a range within the region between the top flange and neutral axis that can be used? Could you use a straight-line interpolation with respect to the effectiveness of bracing? Perhaps an imperical rule of thumb should be established, say a factor of safety of 60% of the distance from the top flange to the neutral axis? The force on the lateral brace would be increased proportionally based on the straight-line interpolation.