Ok. I actually had a conversation with the head engineer for RAM SS at the steel conference a couple of years ago, and here is what he told me about the scale factor:
Since RAM SS does not do true P-delta analysis, it performs an approximate analysis. To do this the scale factor is used. Basically, it is a ratio of the (DL+LL)/DL. The LL can be the reduced live load from the code. If the DL and LL are about equal, the scale factor would be 2. Say for like a single story warehouse. As you get more floors, say for an office building, the LL's would be larger than the DL, and at the bottom, after summing all of these, the factor would be lower, say like 1.25.
If you are using LRFD, the equation should be (1.2DL+1.6LL)/1.2DL.
I should note that from my experience, we use about 1.5-1.7 for multistory, and 2.8 like is shown for single story warehouses.
If you havent been doing it right, dont stress too much. For braced frames, or shearwall buildings the delta is so small, that it really doesnt affect things too much. For a moment frame building, however, it does matter. But more than likely, it is only about the last 5-10% of the total moment that should be applied, at least that is what the RAM guys told me when i was doing it wrong! lol