Many of the new DVD/CD players claim to have DSD features which allow for direct audio streaming. This makes conversion of DSD signal to PCM unnecessary. This conversion "will degrade" audio signal from conventional readbook CD. Hence new DVD/CD player equipped with DSD such as the Denon 2200 will make CD sounds better than say Philips 963SA, which required a conversion of DSD signal to PCM signal. Does anyone know anything about this?
DSD as you so call it is better known as bitstream. i don't think that the process of switching PCM to bitstream affects quality at all. if anything, bitstream DOES sound better. it's alot smoother sounding than PCM whose main benefit is slighly better bass.
from what i recall, bitstreaming isn't a conversion process, it's just a different way to read the same data. PCM looks at the digital data one 16 bit sample at a time. bitstreaming just looks at the same data one bit at a time. in theory, bitstreaming is 16X faster than PCM the way i understand what i've read.
while PCM conversion requires that your D/A converter wait for all 16 bits before generating a volume level, bitstreaming is constantly adjusting it's volume level.
i can switch back and forth between the two formats with my onkyo DVD player and to my ears, PCM sounds slightly more metallic and artificial.
by the way, DTS signals are recorded as bitstream. if you have a PCM only player or reciever, you can only watch DVDs in dolby digital with PCM.