QUOTE (tarsier @ Dec 26 2006, 16:28)

In discussions I've had on this topic, I say that there isn't any difference between DSD and PCM if the conversion to PCM (in other words the delta-sigma stream conversion to pcm) is done with care.
DSD and PCM exist in various formats so you'd have to be a bit more specific. "DSD" is usually 64Fs DSD but there are also 128Fs converters. When DSD is converted to PCM for editing/mixing purposes 24bit 352.8 kHz seems to be a popular choice (Pyramix workstation e.g.). Still, some recording engineers claim (no proof) that there is an audible difference (
example). Another option is 8 bit 2.8 MHz PCM (Sonoma and Sadie workstation). My guess is that when the conversion involves sample rate and/or wordlength reduction, it can't be considered lossless. Most DSD users I know don't think the quality "loss" is something to worry about.
I gladly leave the final answer to the mathematical experts on this forum.