QUOTE(jhbretz @ Aug 15 2006, 11:51)

Now let's ask "what bit resolution is necessary" for this quietest sound? When I say "quiestest sound" I mean the quietest sound on the track of which you can still discern its quality.
You are, I presume, aware of the absolute threshold of hearing?
I should, I suppose, also point out the fact that the atmosphere, being made of molecules of gasses (N2, O2, CO2, H2O primarily) and atoms of Argon, is discrete in nature, and that "air pressure" is in fact exactly the result of the momentum of the molecules and atoms bouncing off something.
This means that there is a noise level to the atmosphere. For something the size of an eardrum, it's reasonably close to 6dB SPL, white noise, in the 20Hz to 20kHz range. This is a noise in the system that can not be removed, ever, unless you remove the air from both sides of the eardrum, which I believe may create some difficulties with the listener involved.
Standard understanding of noise-masking-noise shows that if you have noise in a critical band, and you wish to use to to mask some smaller noise, that an SNR of 3 to 4dB is sufficient to mask that noise.
That is what we have when we have quantization noise being masked by the atmosphere (which, by the way, is just SLIGHTLY below the threshold of hearing in the most sensitive ERB), with the quantization noise being at, oh, about 3dB SPL. That puts the peak level from a system operating in the quietest room on earth at 98dB SPL for peak levels. For much presentation, this is completely sufficient.
Now, if we consider a quiet, normal room, what happens? We have at least 20dB more headroom. So, in other words, 16 bits is likely to be more than sufficient if we have normal speakers, which may get to 110dB on peaks without frying, in a QUIET normal room.
If we argue for 18 bits, we have enough dynamic range to get from the noise level of the atmosphere to the loudest most speakers can get, and certainly to the loudest that the human ear should ever actually be exposed to.
If we want to reproduce a rimshot, up close, first we have to invent new speakers. We should also, in that case, encourage research in to hair-cell regeneration on the Organ of Corti.
If, just for kicks, we argue for 32 bits, we can go from the atmospheric noise level (6dB) to +4dB re: 1 ATMOSPHERE RMS. Of course nobody can realize that level on the negative excursion side, and any one device is only likely to render it on the positive side for one use...