Here is my log chat with a random random player :
I think it is the best explanation of the True Skill System. :)
Very long article and also explains how team score is calculated under Microsoft Patented TrueSkill System.
TrueSkill also has an official page ! http://trueskill.org/
I always stumbled upon the Microsoft Article page when searching. :)
The math article linked in Jeff Moser page has Gaussian, Bernoullis and Matrices. Very Very Very Complicated. :(
Any theories on ladder inflation, match making and other things ?
The calculator : http://research.microsoft.com/en-us/projects/trueskill/calculators.aspx
is very fun to use.