I think that "Pure Direct" on newer Yamaha receivers, and "Direct Stereo" on some slightly older models (or is this Denon's corresponding term?) is basically the same thing. For my RX-V750, the "Pure Direct" description in the manual says that:
- only works on 2 ch. analog, or 2-ch PCM (i.e. digital feed from a CD)
- if an input is providing multi-channel digital (e.g. Dolby Digital or DTS from a DVD, then the receiver will try to use the corresponding analog input, if it exists (I think this is what they are saying, anyway)
- power to "video circuit" is shut down (therefore no video switching or upconverting)
- "certain modes" are not operational. Implication is that all of the DSP modes are turned off, as well as decoding of multi-channel digital (but, basic PCM decoding still works)
(I don't use the multi-channel analog inputs, so I don't know if Pure Direct lets all channels pass through from the multi-channal analog inputs.)
- tone controls are bypassed
- "set-up settings" are not effective (i.e., YPAO settings, or the manual equivalents) - so, no level adjusments, EQ, delay-time adjustments, bass management, etc. Just have front two channels fed to the front speakers.
- display is turned off, presumably to reduce chance of noise, unlikely as that may be (feels good, though).
- and, the all-important blue light illuminates!
Certainly a fair amount of digital circuitry is either bypassed, or else shut off entirely, which might have some form of sonic benefit. I THINK I hear a slight improvement, in terms of openness and clarity. But maybe it is just the little blue light that is making me think I hear improvement! That said, my two-channel music listening is mostly done in Pure Direct mode. (I also have turned off my zone 2 amp, so that the little red "Zone 2" indicator doesn't stay lit when the display turns off!)
My receiver also offers "Straight" mode (effects off), which simply turns off the Yamaha sound field processing, but works for both 2-ch. and multi-channel sources, both digital and analog. (So, for digital sources, decoding is done for all of the source channels, but no extra sound field processing. Tone controls, and the YPAO or manual settings, still work (so does the bass management). This mode is more useful for people with small front speakers and subwoofers, who are using the receiver's bass management.)