The R2R PCM1704 chip doesn't do the oversampling it's the K2 DSP and Nippon filters that pass the over/up sampled signal to them. R2R is the DAC architecture there is more going on in a good DAC or CD player. NOS is in some kind of nostalgia thing right now but as you can see with your Reimyo the best even 20 years ago didn't do NOS without proper filters, Why? It didn't sound very good.
While each of the corporations contributes to the overall sound of the Reimyo, it is the K2 processor that gives it its heart and soul. The K2 processor, operating with 24-bit resolution, takes the incoming digital signal and oversamples it to 176.4kHz. From there the digital signal is passed on to the digital filters, which upsamples the signal 4 times to 705.6kHz before being passed on to the twin PCM-1704 digital to analog converters. The DAC's are multi-bit in operation. As a result, every CD that is played through the CDP-777 is reproduced at an incredible 705.6kHz, which is among the fastest sampling rates available from any CD player on the market today.
http://www.enjoythemusic.com/superioraudio/equipment/0304/combakreimyocdp777.htm