We discuss the process by which energy, initially evenly distributed i
n a nonlinear lattice, can localize itself into large amplitude excita
tions. We show that the standard modulational instability mechanism, w
hich can initiate the process by the formation of small amplitude brea
thers, is completed efficiently, in the presence of discreteness, by e
nergy exchange mechanisms between the nonlinear excitations which favo
r systematically the growth of the larger excitations. The process is,
however, self-regulated because the large amplitude excitations are f
inally trapped by the Peierls-Nabarro potential.