I think you are on the right direction. After you get the coordinates of largest possible rectangle,
If the largest possible rectangle is a valid rectangle, then each side of it must be union of sides of original rectangles. You can scan the original rectangle set, find those rectangles that is a part of the largest side we are looking for (this can be done in O(n) by checking if X==largestRectangle.Top.X if you are looking at top side, etc.), lets call them S.
For each side s in S we can create an interval [from,to]. All we need to check is whether the union of all intervals matches the side of the largest Rectangle. This can be done in O(nlog(n)) by standard algorithms, or on average O(n) by some hash trick (see http://www.careercup.com/question?id=12523672 , see my last comment (of the last comment) there for the O(n) algorithm ).
For example, say we got two 1*1 rectangles in the first quadrant, there left bottom coordinates are (0,0) and (1,0). Largest rectangle is 2*1 with left bottom coordinate (0,0). Since [0,1] Union [1,2] is [0,2], top side and bottom side match the largest rectangle, similar for left and right side.
Now suppose we got an U shape. 3*1 at (0,0), 1*1 at (0,1), 1*1 at (2,1), we got largest rectangle 3*2 at (0,0). Since for the top side we got [0,1] Union [1,3] does not match [0,3], the algorithm will output the union of above rectangles is not a rectangle.
So you can do this in O(n) on average, or O(nlog(n)) at least if you don't want to mess with some complex hash bucket algorithm. Much better than O(n^4)!
Edit: We have a small problem if there exists empty space somewhere in the middle of all rectangles. Let me think about it....
Edit2: An easy way to detect empty space is for each corner of a rectangle which is not a point on the largest rectangle, we go outward a little bit for all four directions (diagonal
answered 2012-02-01T08:26:52.197