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But what I'm wondering is, how does this software work? How does it "know" what kind of information to add in?
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Ask the people who made the Creative Sound Bullshit X-Fi. It has the same "Restore your 128k mp3s to studio quality with our 24bit crystalizer!!!1!" bullshit.
It's impossible to restore audio this way, no more then you can make a 200x200 px image wallpaper sized. You can increase the percieved quality with filtering and whatnot, but thats only an approximate and may sound (or look) completely different then what it originally was.
I'm kinda wondering why this topic is still open.
There's nowhere I can't reach.