The big feature of the Xtreme Sound 7.1 with Digital Dolby Live is obviously the support for DDL. Dolby Digital Live is technology that converts a standard audio signal into a Dolby Digital 5.1 signal. There are a few benefits to this, the biggest of which is the up-conversion of 2.1 audio sources into 5.1 channels. This gives you a surround sound effect from media that would have otherwise been simple stereo.
However, one possible disadvantage of using DDL is that the specification only supports 5.1 channels. So any audio source producing rear channel information will not be reproduced on output. How this affects you depends on your listening habits. If you listen to mainly music and watch movies, then DDL will suit you just fine. But if you’re an avid gamer, you may want to use the analog connections for full 7.1 support assuming you have the speakers for it.
Some other advantages to DDL is that you can use digital interconnects, like coax or optical, from your PC to your output source. This ensures that the audio signal does not degrade over the connection and also makes hardware wiring a snap since you only have to deal with one cable.
The Diamond Xtreme Sound 7.1 DDL supports digital output of 44.1 KHz, 48 KHz, and 96 KHz.