I am working on a project that uses the CY7C65632-48 USB Hub. As a reference I have looked into the schematic of the CY4607 HX2VL Very Low-Power USB 2.0 Compliant 4-Port Hub Development Kit (http://www.cypress.com/documentation/development-kitsboards/cy4607-hx2vl-very-low-power-usb-20-compliant-4-port-hub) and noticed that the pins of SEL27 and SEL48 are connected to the VCC and to 0.1uF capacitors which are placed right next to these pins in the layout. According to the datasheet and the application note these pins are "Clock source selection inputs". I would be grateful if you could help me to understand why those capacitors are needed on those two pins.
It is not mandatory to place the decoupling capacitors on these pins. You can just pull these pins high through 10K resistor.
Please let us know if you face any other issues.