That is a great feature but it is spelled Labamba. Try playing some latino music through that player and you will see what I mean. Honestly, I don't have a clue
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Lambda, the Greek letter as a math symbol, is universally used in physics and electronics for the wavelength of any electromagentic wave. Other than that, you will have to listen to any effect it produces. Using a familiar source CD, listen carefully while toggling it on and off and let us know your results. Good Luck.
I do not know what the Lambda feature is, I do know that the Denon 1560 is 15 years old now and possibly that was a feature that is no longer supported.
I looked at Denon's international web site and this model is no longer listed, even among the discontinued models. I say if you like it, play it and not worry about what they had planned for it.
Come on people! Lambda is the name given by Denon to their D/A converters, something about reducing zero crossing errors or something. I remember this from my low-end days. Here is a link that has a tiny bit of info on this topic. So its not a feature, its the type of D/A thats in the box. I found a link. Here it is.