Yes it does - and Qutest, Hugo 2, TT2 and Dave all share the same process. The M scaler is the first stage of converting a sampled digital signal back into the continuous analogue signal before sampling; and it does this in a twofold process. First another WTA filter (WTA2) that takes you from 768k (16FS) to 12.288 MHz (256FS); then a third order filter that takes you to 104 MHz. Thus the DAC noise shaper, which also runs at 104 MHz, is fed with a digital signal that is very close to the continuous analogue signal that was in the ADC. Yes; the intent is that we are converting the redbook recording to as if it was a 705.6 kHz recording; indeed from an interpolation it will be accurate to better than 16 bits. Obviously not identical, but identical to 16.6 bits to an ideal sinc filter. Of course, that leaves open the question of whether 16 bits is good enough, and how much more we get from longer tap lengths; but for sure there must be a point of diminishing returns. But the DX amps will offer a big step forward in transparency, judging from my listening tests so far; being able to effectively remove the sound of a pre-amp and power amp is no small change in transparency.