Frank had some interesting info from another board I frequent:
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Okay, Lee, here's where one of the disadvantages of having your version of Cubase rather than C4 or SX comes...you have a dithering plugin, but you don't have the superior plugin that is in the top end versions of Cubase. Anyway, here's some info:
a) Generally you should leave everything in 24 bit until you have mixed a song down to 2 tracks, have mastered it in Cubase, and are ready to export a 16 bit stereo file for CD burning. Do not dither 24 bit tracks to 16 bit until the very last; work in 24 bit or 32 bit floating point until the last possible moment
b) The dithering plugin goes in slots 7 or 8 in your Stereo master bus Inserts, not in 1-6.
c) SX and C4 owners should use the Apogee UV-22HR plugin, but you only have the UV-22, so use that, and start with the default settings.
d) Set your left and right locators correctly at the beginning and end of the 24 bit stereo file you wish to export, and in the Export dialogue, choose .wav, 16 bit, stereo interleaved.
Hope this, along with the info the others have supplied will help. Not sure why dithering etc. is not covered in your manual; it is in the SX and C4 manuals....................frank
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Have to look into the whole dithering thing (trying not to be a dithering idiot)
Never tried a plug in for going to 16bits.
Veeerrrry Interesting.