This is the commentary in the handbook
"If a single set of 3-wire, single-phase, service-entrance conductors in raceway or cable supplies a one-family, two-family, or multifamily dwelling, the reduced conductor size permitted by 310.15(B)(6) is applicable to the service-entrance conductors, service-lateral conductors, or any feeder conductors that supply the main power feeder to a dwelling unit.
This section permits the main feeder to a dwelling unit to be sized according to the conductor sizes in Table 310.15(B)(6) even if other loads, such as ac units and pool loads, are fed from the same service. The feeder conductors to a dwelling unit are not required to be larger than its service-entrance conductors."
It sounds like you can use 2/0cu or 4/0al
250-66 determines the GEC and that is based on the SE cable size so you use one #4cu.
That can be connected to the neutral anywhere from the service point to the service disconnects but the meterbase is the easiest place.
Unless it's a Chicago thing ;-)
[This message has been edited by gfretwell (edited 08-12-2005).]
