QUOTE (vincefalks @ Aug 24 2009, 09:59)

Apparently analog formats give a "full" and "seamless" picture of the soundwave.
No, they don't. All analog domain signals and signal processors add noise, linear distortion (frequency response, phase, and non-linear distortion(THD & IM).
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They are not quantized like digital,
Is that the good news or the bad news? Digital signals can have any desirable level of accuracy, just use more bits per sample, and more samples per second. Analog signals have definate limits, both practical and theoretical. Some of the dirtyist audio around is found in the analog domain.
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but have a "perfectly" smooth representation of the waveform.
Not so. Take a good look and you see that anlog waves are slightly mishapen, and have noise riding on them.
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Is this really true?
No.
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Isn't the accuracy of their waveform representation limited to their very physical nature?
That's true for both digital and analog signals. However, the accuracy of analog signals have definate limits (such as thermal noise). The potental accuracy of digital signals is almost unlimited. Just add more bits per sample and more samples per second.
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E.g. reel to teel tape...whatever the material is that makes up the picture on the tape (I'm not sure what it is :S), doesn't that, when you take it under the microscope, have holes as well (like the "space" in between each sample in digital audio)?
Exactly. Analog tape is composed of microscopic entities known as domains, and domains represent a definate amount of magnetization, no more and no less. If you try to change their magnetization with a varying magnetic field, each domain will resist change until a threshold is reached, and then they flip and have exactly the opposite magnetization, but the amount of magnetization will be the same.
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Surely the vinyl lovers can't claim that "analog" is "perfect".
The smarter ones know better, but there are all those other ones that just graduated from the corner hifi shop school of audio technology.
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If this is true, this brings me to a question. Could a ginormous reel to reel tape, theoretically be more accurate than a normal sized tape (since it has many more "dots of dye" etc. to paint the waveform)?
Yes, the types of magnetic tape that used to be used by professionals were wider, thicker and moved faster than ordinary cassette or home reel-to-reel. tape However, you have to double the relevant parameter to get maybe a 3 dB improvement, so even making it much biger and moving it much faster had practical limits.