Thanks David,
I will write you directly as you suggested, but for the sake of this thread I wanted to thank you for the good advice and try to clarify what I am looking for.
Example
I want to present to reader with a table of the product of the Pauli matrices like
Table[PauliMatrix[i].PauliMatrix[j] // MatrixForm, {i, 3}, {j,
3}] // Grid
I would go on to show the results in terms of the Pauli matrices as well, i.e.
Grid[{{s0, I s3, I s2}, {-I s3, s0, I s1}, {-I s2, -I s1, s0}}]
(with s0 being the 2x2 Identity matrix, and si the i'th Pauli matrix).
Clearly, I can do this by hand, but then I might as well work in a typesetting program (like LaTeX). Also as I advance to to work on Dirac's Gamma matrices, (anti-)commute relations, contractions and such, it would be helpful to have Mathematica recognise e.g. that [s1,s2] = 2 I s3 without necessary being aware of it myself.
The "magic" command would be something like ExpressInTermsOf[myExpression,myFavoriteMatrixList], looking in myExpression for possible ways to rewrite it using the elements in myFavoriteMatrixList.
So I am very curious to see what your FactorOut does.
/Mogens