OK, here goes. I have looked at the information, and am still trying to wrap my head around it.
An oxidizing atmosphere at temps of 15-1700F will oxidize iron faster than the carbon can leave the steel due to diffusion. As the iron oxidizes(scales), the carbon recedes into the steel, leaving a higher concentration of carbon in the surface below the scale. At higher temps, the carbon can be defused out of the steel much faster, leaving a scaled, decarburized surface. This would especially be true at forging temps.
A reducing atmosphere at lower temps will allow the CO2 in the mixture to take the carbon out of the steel, turning the carbon into more CO2. The CO present at lower temps is not helpful, due to the low diffusion at the lower temps. At higher temps, the CO can more easily add carbon to the steel, so the amount of carb/decarb, is basically the ratio of CO/CO2. The problem w/ a reducing atmosphere though, is that other gases are/can be present. Because of this, even if the CO/CO2 proportions are right, the other gases that may be there can be decarburizing. This is the condition referred to as a "wet" reducing, which is still decarburizing. In an oxidizing atmosphere, those would have been consumed.

From this, I am getting that soak time for austenitizing would be best spent in an oxidizing atmosphere, but forging should be done at a neutral or reducing atmosphere. On a wet day, neutral would be best for forging, and the time in the forge would be trying to keep the piece from scaling or decarburizing. On a dry day, a reducing atmosphere could actually be adding carbon that would be lost while the piece was in the air.
Is any of this right, or do I have to read it all over again?

On a side note, I am glad to learn what caused the sweat/boiling/melting on the surface of a couple knives I did.
