Oooops!!
Well, there goes the cred.. I think I may have been a little under the weather when I posted that last! (I did wrestle with my conscience about doing the sneaky edit, but I will correct myself here instead.)
Read QFE for QNE in my above post.
As to the density correction, I was referring to the fact that, if you are at a field with an elevation of 5000', and you set the QNH from the tower you will see 5000' on the altimeter, regardless of temperature, ie corrected for density.
This compares with flying at (a true) 5000', and using a QNH from a sea level airport, in which case you would have to do your own density correction, so the QNH is density corrected up to the level of the QNH datum (the airport that issued it.)