The following setting options are available on the Save/Output Settings tab:  
Check box
Use dithering when converting to lower bit depths
Activates noise shaping, which ensures higher audio quality when converting.   
Drop-down menu
Noise shaping filter
Specifies the type of noise shaping.
IIR filter (2nd order): Infinite Duration Impulse Response. Uses IIR filter. IIR filters can provide an infinitely long and continuous impulse response. In general they achieve a better subjective audio quality than FIR filters do, however they have higher levels of interference energy outside of the audible range. Second order means that sound is attenuated by 12 dB.
FIR filter (3 taps): Finite Impulse Response filter. Uses FIR filters. FIR filters possess a pulse response with guaranteed finite length. This entry is selected by default.    
Drop-down menu
Play surround audio as
Specifies how surround audio is played.
Multichannel audio (true surround sound): Plays surround audio with all channels.
Stereo using Nero HeadPhone (Virtual Surround): Plays surround audio filtered down as stereo, with a virtual surround effect generated for headphones.
Stereo with Nero VirtualSpeakers (virtual surround): Plays surround audio filtered down as stereo, whith a virtual sound effect generated for speakers.    
 
IIR Filter
A filter is a system that links an input signal with a transmission function and makes this changed signal available at its output. A filter with infinite pulse response (IIR filter) uses the input values as well as buffered values of the output signal.
FIR Filter
A filter is a system that links an input signal with a transmission function and makes this changed signal available at its output. With a filter with finite pulse response (FIR filter) the output signal is made up of several partially buffered values of the input signal.
Noise shaping
Noise shaping is a process in which the noise of a digital signal is more strongly concentrated in certain frequency ranges. The noise is thus displaced into frequency ranges that are irrelevant for further signal processing. These frequency ranges can subsequently be damped with the aid of various filters and in this way the noise is suppressed.


Save/Output Settings Tab