LZSS compression interactive not encoding text correctly

[courtneycb]

For the example below it should replace all but the first 2 characters with a pointer.

[eAlasdair]

New version is an improvement but ignores text that hasn't yet been encoded when encoding the next bit of text. For example:
abababababababa is encoded as ab 0-2 0-4 0-7, but it should be ab 0-13

According to Tim:

It's might seem a bit odd, as the reference includes itself, but it all works out if you decode it.