Listen carefully to what BG says at 1:21. If you have a DSD file and just want to use it to cut a record without changing the EQ or any other manipulation, then you don't have to convert it to PCM. However, if you want to manipulate the DSD file (EQ, etc) then you do have to convert it to PCM. You can then use the PCM file to cut the lacquer or convert it back to DSD (not sure why you would convert it back). So if you (ala MoFi) are using the analogue master tape and copying it to DSD, if you are doing the EQ changes during the copying from analogue tape to DSD, and then you use the DSD file to cut the lacquer with no further manipulation, then you don't have to reconvert to PCM. However, if you make a direct copy of the master tape to DSD and then need to EQ the DSD file, then you need to convert to PCM. Basically, DSD has extremely limited editing capability, while PCM has much better editing capability. Hope this is clear. Anyone with a comment or correction, please feel free to do so.
Larry