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In the live manual, there's a fairly long section on how to get the best sound out of the program (check chapters 29 and 30 in the live8 manual, very informative)....
to paraphrase:
-Know what operations in live are neutral (no effect on sound quality) or non neutral (chapter 30 in the manual).
-Make sure the warp and fade are turned off on all your clips (if you're not warping, otherwise, stick with Hi-Q mode and the complex pro algorithm)
-Keep your projects in 32bit floating point and bounce them out...proceed to dither and change bit depth in dedicated programs like wavelab.
-use complex pro algorithm (live 8) for warping, and make sure "legacy Hi-Q" is turned off in the options
Since i've been using ableton more and more (it's even beginning to replace my traditional daw's) i've been mixing more and more in ableton....all my vst and uad plugs work there, and with 32bit float, the sound quality is just about as good (when not warping, although the warping algorithms are getting insanely good in Live) as my cubendo sessions. Not only that, but i get the added bonus of the uniform user interface, insane modularity, superior automation, and all around fun that ableton provides.
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