HDCD comprises about 8 different parameters, with some/all used [or not] by the mastering labs of the world. And encoding is not always denoted on the jewel case, as mainiac states. Yes, it does make an audibly superior presentation but I wouldn't go out of my way solely for that feature. There's a lot more to satifying playback than a chip and software. But there's no denying Professor Johnson's aural acumen. The Denons sure look the business. Good luck.