There's no mention in the manual or on Pioneer's 563A website about an upsampling capability. It does use a Philips SACD decoder chip however. IMO, redbook CD playback quality is equivalent to their Elite line (45A/47Ai) and some Sony ES models. Not bad at all for the money..even the picture quality is quite good.
Edit: I forgot to mention that to hear the best redbook quality on this player you have to go into the setup menus and select 2ch, fixed levels, and digital out to off. This also turns off the bass management and eliminates any SACD to PCM conversion.
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