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| What exactly is the purpose of the coupling and decoupling caps in this design and what kind of capacitor is prefered in this application? |
Rather than try to reiterate information that can be found on the web I will tell you where to look.
First, if you want to have a deeper understanding of electronics it is best to start with understanding the 3 basic circuit components: resistors, capacitors, and inductors. You can find in depth articles on each of these on wikipedia. The question is how deep or superficial you want your understanding to be. These topics go very deep and you can take right down to the quantum level and presumably beyond.
As for coupling and decoupling the two principles are high pass and low pass filtering, respectively. You can find these topics on wikipedia too.
A high pass filter is where a 'coupling' capacitor is used. Here the idea is to filter out very low frequencies and most importantly to block 0Hz or dc voltage.
A decoupling is basically the inverse. Here we want to get rid of everything but dc voltage by shunting higher frequencies to ground.
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| As for the powersupply caps at the floppy connector, would two 470uF Elna Cerafine caps work? |
For the power supply caps these will be fine so long as the voltage tolerance is greater than or equal to 16V. These are decoupling caps, btw, because we would like to have only dc power with no superimposed ac ( ie a 'clean' power supply).