In Audio, make sure Sox is checked.
See explanation below on the low pass filter. You may want to change that before actually converting.
Select the file(s) to convert - try a few at first to test
Right click and select Library Tools and Convert Format
Select the output format - e.g. FLAC
Click on Options
Set Destination and Mode appropriately : Note, if you add them to the library you are going to have 2 entries for each album, with different formats.
Check Apply DSP and click on dsp settings...
Check Output Format and click on it
Set >768K, 352K, 176KHz to 96 KHz - explanation below
Make sure Output Channels is set to Source Number of Channels
Return to Audio Conversion Options
Set Bitdepth to Automatic or 24 bit
Hit OK
Hit Convert
There are a couple of things to note.
MC converts DSD files to PCM at 1/8 the original sample rate. So, 2.822 MHz goes to 352 Khz, 5.6 MHz goes to 705 KHz. Therefore, you need to put downsample rates (96 KHz in your case) in the 352KHz, 705 KHz and >768 KHz conversion lines.
When converting to PCM a lot of high frequency noise is filtered out. MC has a default low pass filter that filters that noise out. It is a 24 Khz filter with a 48dB/octave slope. That is an effective but conservative filter. There are other options, but they have a lower slope which can let high frequency noise through. If you want to use the default, then you do not have to do anything.
To change the filter go to Tools - Options - Audio - Advanced - configure input plugins and select DSD
You will see the filter options. You can select the one you want or you can turn off the filter and set one in the dsp settings.
While there, you should probably check the box to increase the volume by +6dB. SACDs normally have a lower volume that PCM files.
To set your own filter, go back to the convert options and select dsp settings.
Select Parametric Equalizer, Add a New Low Pass Filter and add a starting point (say 50 Khz) and a slope (say 48dB/octave). Those correspond to the original Sony/Philips filters on SACD players.
I think I got everything, but that should get you pretty close. Any questions, just ask.