The reciever then processes the analog signal and sends it to my speakers using the bass management, which I have set to 80hz for all 5 (7) speakers. So, all this got me looking back to the manual and doing some research as well as far as DSP modes (like Dolby, DTS, game, 7.1 channel stereo, etc) which would convert the signal or not convert if I keep it to "direct" mode. I found that there are only a few manufacturers that have receivers out there that will internally handle DSD without converting to PCM. Yamaha, Denon, Sony and Onkyo seem to be the vendors with some product (I say some product, becuse not all products from each manufacturer will natively decode). This receiver does have room correction called AccuEQ, which I actually do not use. I'm old school and I just get my speaker levels calibrated via a Radio Shack sound level meter.