noise filter and dynamic range

I was unaware of this and was wondering if anyone had any thoughts. I just read here that noise filters, such as the e-510's noise filter, has a significant effect on the dynamic range. Turning it off yields a much smaller dynamic range than leaving it on.

I haven't been able to test this out myself, but does anyone understand why this is or have any thoughts about this?

Since I generally find myself looking for a bit more dynamic range in my photos, I'm thinking about pushing it back up to low (any higher then I'd probably find myself looking for more detail).

Well it makes since that it would and they look as though they have done the homework. I really can't be the one to agree or disagree. But it is interested to say the least and I would certainly like to see the same test results on the E3 and 520.

I think I'm having trouble understanding this.

My limited knowledge makes me guess that more noise makes shadow detail harder to distinguish - and that's where the decrease in dynamic range is. Or am I just totally wrong?