God help us!

I'm thinking the 1" per 480" you refer to is actually a deflection of 1/480 or (L/480). I'm also thinking 12" (typical) joists spanning 17 feet and 24" on center ain't gonna cut it. That will bring you in around L/300.
If you use 16" joists on 16" centers spanning 17' you will be plenty stout.
Do you feel (2) x 5/8" plywood is stiffer than (1) x 1 1/4" sheets
Stiffer isn't the only thing you are after in this case. The use of two sheets will afford you some needed additional lateral slip in the structure.
Glue and screw the first layer to the joists.
Don't glue the second layer at all and don't screw the second layer to the floor joists, screw it to the first layer purposely missing the joists. Lap all seams.
THEN install the tile backer board in a fresh mix of thinset and use fasteners as directed by the maker of the board. Use a 1/4" by 1/4" trowel, no more no less.
Can you comment on this statement that was a recommendation to have a good tile installation---yada yada.
DO NOT use an additive with modified thinset. That's what modified thinset is already. All the necessary additives are already in the bag. Dreaming up your own concoctions can wreck the intended chemistry of the product. Screwin' with it is some very bad advice you have gotten from someone.
What size/type tile are you using? Don't know if you said already but I ain't gonna go back and read all that stuff again.
[Edited by Bud Cline on Wed, Jun 3, 2009 at 9:17 pm CST]