the plugin actually does capture the full resolution a hdcd offers - at least i think i found that out. the plugin captures to an wavex-file. there is a clear difference visible with certain hdcdīs - some dynamic expansion & dithering for higher resolution, some are only mastered with a hdcd processor, which results in being a hdcd without any of its advantages (i think). an example for the latter case are a few soundtracks from the composer thomas newman (road to perdition).
other cdīs are using only dithering to improve bit resolution, for example "jaques loussier trio plays debussy" from TELARC.
other cdīs are using all things a hdcd can offer, for example "raise the titanic" from john barry (SilvaScreen), nearly all recordings from Reference Recordings, some soundtracks like "Danteīs Peak", "Contact", "Mouse Hunt"...
i built my statements upon the visible & louder dynamic peaks (with a lower average volume level) when comparing the decoded and undecoded waves. also visible was the varying bit-depth in bit-display in wavelab. to me it seems that the bit-depth directly responds to the amount of dithering applied to the signal according to the instructions in hdcd-encoding. because: at some peaks the bit-resolution jumps to 20 bits, sometimes to 18. but normally itīs at 17 bit.
a personal note: these are only my personal guessings, since i donīt know how to prove, that there are actually 20 bit or less. the changed dynamic is easily visible (& audible).
interesting enough, a hdcd can only be decoded, when it is a cd. the wavefiles itself wonīt be decoded when extracted to harddrive with EAC. it seems that WMP only recognizes a cd.
below is an example: it compares the undecoded source, ripped with EAC & the decoded WAVEX-file. you can clearly see the dynamic expansion (and itīs massive, not only tiny peaks) and on the right the differences in bit resolution. at this particular part of the recording (jacques loussier trio plays BOLERO (TELARC)) the resolution is at 20 bit, visible in the pink boxes reaching down to 20 bit in the bitmeter.
http://img135.imageshack.us/img135/1526/untitled1vj8.jpg