I'd need to check Andrew but from memory using the most common methods a direct add is the best for reducing noise, but you will quickly burn out your bright stars (track and accumulate is a common form that SBIG uses), then I believe averaging, but that will still leave the outlier pixel values (as will the add combine), and then median which is least effective on noise (still reduces but not as much) but deals with outliers.
when I get home I'll check for links and references for you to peruse.
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