QUOTE(CuteStudio @ Aug 9 2007, 09:32)

Nyquist
This may be down to my ignorance, but this problem still puzzles me:
22.05kHz, assuming we have a perfect clock and perfect sinusoidal waveform, how do we represent a (for instance) 1024 level waveform? It peaks at +512 and -512, which is fine.
Or it could peak at 0 and 0, which isn't! Actually, anything below 22.05 kHz can be perfectly reconstructed in theory, but not 22.05 kHz itself. 22.049 kHz for example, would have a number of points near zero for a while, then a number of points near +512 and -512 for a while then back again over about one second. It looks almost like a beat pattern - and a very slow one because we're so close to the Nyquist limit. A sufficiently long sinc-function reconstruction filter would extract the 1024-sample amplitude from this properly, including phase down to accuracy far below the sampling period.
In practice, we don't actually try to represent signals so close to the bleeding edge of the Nyquist limit, so the apparent beat pattern is faster and shorter reconstruction filters are more than adequate.
For CDs, frequencies over 20 kHz are usually filtered out, and in blind listening tests on real music (rather than artificial test signals of extreme loudness that might fry your tweeters), a lowpass removing all frequencies above about 18 or 19 kHz is indistinguishable, so there's ample room for relatively crude reconstruction filters to render transparent analogue sound from CD.
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Going from 96kHz to 44.1 (eg) has to deal with this, integrating may simply create an average amplitude and phase which will still not be the same as the original.
You would filter out frequencies of 22.05 kHz and ever-so-slightly below in the 96 kHz domain as your anti-alias filter prior to downsampling. Then there's no problem.
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Grainy sound
The Dynamic range is extremely bad wording on my part, what I'm trying to say here is that the linear and log scale conversion causes problems with the 16bit CDs for quiet passages (not an issue with modern pop!).
For instance, if you have a trailing cymbal sound that goes to -50dB below the normal music level then that sound will use 0.003162 of the DAC scale. If the RMS loudness of the music was -6dB below full scale (0dB) anyway (i.e. the CD is not clipped) then the actual 16bit level will be -56dB or 0.001585 of 65536 levels = 103.87456 levels. This corresponds to slightly less than roughly to 7bits of resolution, in the 24bit world you'd still have almost 15bits at this level.
Maybe grainy is the wrong word - but you run out of bits very fast on quiet areas, I know dither can help in the midrange but 16bits is still rather tight compared to analog. Maybe it's just the vinyl hiss but for me vinyl always sounds 'softer' or 'sweeter' on very quiet parts than the CD.
Your last comment about vinyl can apply equally to dither (and for now, we'll talk about flat dither - 1 bit, not frequency-shaped dither). With a statistically sufficient amount of dither, there is guaranteed to be no truncation distortion and the signal sinks gracefully below the noise with no harmonic overtones being added.
You can fade from a 4-bit signal to a 0.001-bit signal (which you calculated at higher resolution or floating point before converting to those bits, of course) and it will slide gracefully below the dither noise become imperceptible just as gradually as the signal fading below the much louder noise of vinyl.
This works because the ear doesn't hear the sample-values, but essentially hears the frequency spectrum over roughly 20-40 milliseconds time resolution (something like 1024 sample FFT at 44100 Hz is a good approximation). It also perceives much smaller inter-aural timing differences for stereo localization, and the pinnae of the ear cause frequency-filtering (EQ) dependent on the height of the sound source.
Over 1024 samples duration, a signal frequency, even if much smaller than 1 bit, causes small perturbations be added to the dither noise (which is calculated at sub-bit levels then rounded to bit levels) and this causes the frequency spectrum to accurately show the amplitude of the sub-bit signal. Also, you'll notice that over 1024-bit averaging of the FFT, the flat dither noise attributable to each frequency-bin amounts to about -120 dB, but if you add the power (convert out of dB to add) over all the bins (the convert back to dB) you come to -93 dB (see
this post for the calculation and graphs)
Of course vinyl has not only constant white noise but crackles - a sort of impulsive white-spectrum noise - which does differ from CD's constant dither. We might like that sound, like I like the sound of a log fire crackling, and it may disguise the noise, but properly flat-dithered 16-bit PCM should not sound grainy or un-natural any more than a top grade low noise studio analogue tape reel would sound grainy.
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Down-converting
I agree that the music can still be respectable here, certainly CDs made by Hi-Fi manufacturers seem to be pretty good, although I'm not a personal fan of dither as I can't see it doing much to help the high frequencies.
Dither is different from noise shaping. Flat dither makes all frequencies behave the same. In fact, for normal listening volumes, it's inaudible at 16-bit unless you crank the volume up dangerously to hear some details in the fade-out of a track.
The confusion arises because noise shaping is often applied at the same time as dithering to reduce the noise floor at the most audible frequencies for humans below the -120 dB of flat dither, perhaps by around 15 dB in the 1-4 kHz range. Providing the dither remains sufficient, statistically speaking, this causes no truncation distortion and improves perceived sound. The extra noise at ultra-high frequencies can easily be kept way below the absolute threshold of hearing.
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Dark side of the music Industry
I'm disappointed that Dark Side of The Moon has been squashed - if Floyd gets squashed on the new 'high quality' iTunes then that's game over for everything. Most annoying.
Yup, the CD remaster was squashed on the CD, so a perfectly transparent AAC encoding of it is going to represent those squashed dynamics perfectly. If iTunes had encoded the earlier CD release it would have been un-squashed, as would the properly mastered SACD side of the dual-disc version. It's not the data-compression that caused the loss of dynamics, but the dynamic-compression when mastering the CD.
DSoTM reissue isn't the worst example of dynamic compression but it's still a retrograde step and another thing that puts me off anything that says "Digitally Remastered" with an issue date after about 1996.
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Thanks for the comments, I'll amend the page accordingly (still not sure about the phase differenciation of a 22.05kHz tone though

)
No, you can't differentiate 22.05 kHz tones. Actually dead on the Nyquist limit is not possible, but 22.04999 kHz can be done, given a long-enough reconstruction filter (order-of-magnitude calculation, to get 0.01 Hz below the Nyquist limit reconstructed, you'd need about a 100-second long = 44,100,000 sample filter length). To actually correctly down-sample a 22.04999 kHz sinusoid at 44.1 kSa/s, you'd have to have a brickwall anti-alias filter of sufficient length to have a 0.01 Hz stop band too! In reality nobody goes that close to the Nyquist limit for audio, but it's theoretically possible. You can get infinitely close to Nyquist, but you can never reach it.
A good illustration of reconstruction filters is available in even old copies of Cool Edit like shareware CoolEdit96 (Cool Edit Pro then became Adobe Audition). If you generate a 22.0 kHz tone, you can zoom into a few samples across the whole screen and see the sample values and the reconstructed waveform that passes through those points, complete with peaks above and below the amplitude of the sample points. Equally, you could upsample to an incredibly high sample rate, apply a tiny time-shift, much less than 1/44100 second to left or right channel and see the reconstructed 22.0 kHz wave is correctly time-shifted.
The rules of digital audio:
Nyquist theorem - filter out all frequencies above Fs/2 before sampling and you avoid aliasing.
Dither - apply sufficient flat dither (or sufficient white noise to your analogue signal) instead of rounding or truncation and you get no low-level digital distortions when you quantize to however many bits you choose.
Reconstruction filter (Nyquist part 2) - after you convert from digital to analogue for output you have a staircase waveform (containing frequencies above the Nyquist limit of your true audio), so you must filter out Fs/2 and all frequencies above it to reconstruct the true analogue signal. This is normally integrated into the DAC, so it's nothing for consumers to worry about. Sometimes, to get a brick-wall filter, the digital audio is upsampled with a digital brick-wall filter before the DAC which then runs at a higher sampling rate, so it's only necessary to have a very simple analogue lowpass filter to remove content above that higher Nyquist limit, and far above audible frequencies.
People have been known to bend the rules, mainly in applying insufficient dither or none at all. That can cause truncation distortions which could well be a cause of graininess or "digititis" in early CD releases.