Thanks for taking the time for that feedback, Hugo. I appreciate it.
Running totals are no excuse for using cursors... not even for display.
http://www.sqlservercentral.com/articles/Advanced+Querying/61716/
So far as the "bin packing" thing goes, I too am remiss... I said I think I know a set based way to do it and I just haven't gotten back to it. My appologies to you and myself because it's definitely an interesting problem and sounds like a lot of fun.
--Jeff Moden
Change is inevitable... Change for the better is not.