By Jane Ganahl OF THE EXAMINER STAFF

October 30, 2000

"I THINK we have the potential to be a great band," says Stone Gossard, guitarist for Pearl Jam, without a shred of irony.

The notion that the Seattle quintet, which defined grunge rock and anthem rock in the '90s, is not already a great band is flat out preposterous to some - including this critic. When it's pointed out to Gossard that Rolling Stone recently called Pearl Jam one of the best bands of all time, you canalmost hear him backpedaling over the phone, from a tour stop in Salt Lake City (they play Shoreline on Tuesday night).

"Well, let me put it this way: I think we have great moments. But as far as making the definitive record, the one that really speaks to people, I look forward to making one of those - either again or for the first time, depending on your opinion."

Fans would opine that Pearl Jam, in its 10 years, has produced some of the most inspiring, powerful rock music ever committed to tape. From the grunge assault of its debut "10" to the genre-bending tone poem of 1996's "No Code" to the most recent,neo-psychedelic glories of "Binaural," Pearl Jam continues to challenge - both themselves and listeners.

"It's true that we're always aspiring to be better; we're never content," says the 34-year-old Gossard, who still calls Seattle home. "And from my perspective we're not there yet. The new Radiohead record - that's the kind of thing to aspire to. And we always go into each record thinking this could be the best."

Certainly, as live performers they remain nearly unrivaled in terms of raw energy, musical chops and explosive emotion, thanks in large part to fiercely intense singer Eddie Vedder. And a recent show I saw in Paris proved they have also learned something new - how to have fun. Vedder, who used to have problems connecting with the audience, was engaging and loose, even laughing.

"I think we've all lightened up a lot and grown up a lot," says Gossard. "I think that's when the band is the best these days - when we get up there and thrash."

Some observers are amazed that Pearl Jam is still together, having been under siege over the years for its Quixotic crusade against Ticketmaster (one of several fights that took the band into the spotlight, even to Capitol Hill), for its adamant stand against making videos for MTV (it hasn't done a video since "Jeremy" in 1993), and because Pearl Jam is a band that always called its own shots. And has gone its own way: Every member is active in side projects - including Gossard's own power-pop band, Brad.

"I think being in a band is just like being in a relationship - you have your ups and downs. Certain weeks nothing goes wrong, other times things are not so great. But generally the band has been in great spirits."

That's no small statement, given Pearl Jam's greatest challenge yet - a horrifying incident at a festival outside Copenhagen in early July. During the band's set, and in inclement weather, nine young men were crushed to death when the crowd surged forward against a barricade. For the fan-devoted band, it was almost too much to bear, and while authorities tried to determine blame, Pearl Jam considered breaking up.

"If we felt that this had happened through our neglect, we would have quit," says Gossard. "But it became clear that we were, at that moment, at the crossroads of a lot of circumstances that led to this tragedy, and we had no control over it. And when we learned what had happened, we tried to make it better."

Gossard clearly feels uncomfortable talking about it. "This was the most insane, terrible thing to ever have to go through, and to talk about it in an interview kind of belittles it in some way."

But Pearl Jam persevered, and although the band canceled its remaining European dates, the current U.S. tour is drawing raves.

So much bootlegging was taking place at Pearl Jam concerts that the band decided to take (yet another) offbeat and unprecedented move, and tape every concert stop on their summer European tour for fans to buy off their Web site.

But so good was the quality - and so excellent the music - that Pearl Jam's record label swooped in and put the CDs in stores as well. When the 25 separate CDs were released last month, five debuted in Billboard's Top 200.

"This was meant to be for the fans who buy bootlegs for $40," explains Gossard with a groan. "We wanted to give them a higher-quality, cheaper option, but we got caught in a bit of a double-bind. It was all going to be done on our Web site, but then Sony said you have to let us offer it to retail outlets! But the cheapest way is still through our Web site (www.tenclub.net), where they're only $10."

As for record sales, Gossard pays no attention. Part of that could be the Pearl Jam separatist spirit. Then again, Gossard's goals are less tangible.

"We just want to make music that's beautiful, that moves people. When I listen to something we made a long time ago, sometimes I think "oh God,' and other times I think "that's pretty good!' So we're getting there."