Daniel 422, the 350khz sampling rate has nothing to do with the nyquist theory. If you look at digital PCM signals they are like a staircase and there is visible ringing. The 350khz sampling rate is the minimum to compleyely remove this ringing. DCS, the company has a white paper that discusses the ringing along with upsampling.In addition, Wadia digital built their designs on removing this problem at the expense of some roll off at the highest frequencies. We know upsampling alone, not resolution enhancement (which is sometimes looped together with upsampling with perpetual tech gear)does not add information. We know theoretically we cant hear above 20khz so it cant be missing overtones/ harmonics. SO WHY DOES UPSAMPLING SOUND BETTER? From all indications its the absence of this ringing. SACD avoids this now and PCM could with a higher sampling rate, however, when will we see 192khz sampling as the standard, let alone 384 khz, which would be the next logical and necessary step. As for SACD, I like it better than PCM but it has a long way to go to rival analog. The other reason I like SACD is with SACD we still have access to a PCM redbook layer we can copy and upsample (in most cases).