  Slave boson calculations have been carried out in the three-band tJ model for
the high-T_c cuprates, with the inclusion of coupling to oxygen breathing mode
phonons. Phonon-induced Van Hove nesting leads to a phase separation between a
hole-doped domain and a (magnetic) domain near half filling, with long-range
Coulomb forces limiting the separation to a nanoscopic scale. Strong
correlation effects pin the Fermi level close to, but not precisely at the Van
Hove singularity (VHS), which can enhance the tendency to phase separation. The
resulting dispersions have been calculated, both in the uniform phases and in
the phase separated regime. In the latter case, distinctly different
dispersions are found for large, random domains and for regular (static)
striped arrays, and a hypothetical form is presented for dynamic striped
arrays. The doping dependence of the latter is found to provide an excellent
description of photoemission and thermodynamic experiments on pseudogap
formation in underdoped cuprates. In particular, the multiplicity of observed
gaps is explained as a combination of flux phase plus charge density wave (CDW)
gaps along with a superconducting gap. The largest gap is associated with VHS
nesting. The apparent smooth evolution of this gap with doping masks a
crossover from CDW-like effects near optimal doping to magnetic effects (flux
phase) near half filling. A crossover from large Fermi surface to hole pockets
with increased underdoping is found. In the weakly overdoped regime, the CDW
undergoes a quantum phase transition ($T_{CDW}\to 0$), which could be obscured
by phase separation.
