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Dear Lawrence,
"The existence of a classical world is the big mystery." Indeed.
It is an irony of history that physicists, with the notable exception of Helmholtz, never seem to have become very interested in the "measurement problems" of classical physics - the problems of how observers differentiate systems from their environments and of how they determine that multiple observations are observations of the same system. Had they been, the variations introduced by quantum theory might not have seemed so surprising or shocking.
As far as I know, the first experimental studies of the object identification problem were those of Burke, who showed in the 1950s that how an object moves in part determines whether humans see it as remaining the same object over time. The frame problem wasn't formulated as such until McCarthy and Hayes in 1969. Now, however, these questions are an industry - much larger than the foundations of physics! If you really want to understand how humans implement the trace operator, you use an fMRI machine, or study the cytology of Alzheimer's disease.
Self-reference enters into this as the question: how does an observer know that part of the observation is observation of a memory? How is this tag implemented? It seems obvious when you're looking at your instrument and looking at a logbook page. But it's less obvious when the memory is in your head.
So yes, it is the classical versions that are the really hard ones. When we understand how someone knows that her coffee cup is the same thing as it was 10 minutes ago - really understand it - we'll be making progress.
Cheers,
Chris