The test
The big question here is: with the MiniDisc format's compression scheme, can you tell the difference between an analog and digital source? To find the answer, I compiled a few songs from several genres and recorded them onto the same MiniDisc using a Sony MZ-R70. Songs were ripped, without compression, to raw WAV format to preserve their original CD quality. I then recorded them to MiniDisc, once using the DG2, and once with a SoundBlaster Live!. The test playlist was as follows:

1. Lo-Fidelity Allstars - Battle Flag
   
2. Radiohead - I Might be Wrong
   
3. James Brown - The Payback
   
4. Johnny Cash - Don't Take Your Guns to Town
   
5. Tool - Eulogy
   
6. Tea Party - Winter Solstice
   
7. Tori Amos - Playboy Mommy
   
8. Moby - Natural Blues
   

I was using a set of Sony MGR-G52 headphones at the gym, running outside, and in a completely quiet room; this wasn't an audiophile-worthy test. With this setup, any difference between an analog and digital source was hard to find, at least with my ears. This isn't to say that the digital quality is lacking. Because there's some compression on the MiniDisc, namely the ATRAC compression scheme, a digital signal's advantages are somewhat muted.

About the only thing I can say about the difference in sound quality between the two is that the songs recorded with the DG2 sounded a little cleaner, if that makes any sense to you. It's not a glaring difference, but it's something that I did confirm with another test subject in a blind test. This minute difference in sound clarity is only somthing you'll likely notice in a side-by-side comparison.

Apart from slightly cleaner sound quality, the DG2's digital link also allows compatible MiniDisc recorders to automatically insert track marks. When recording off an analog source, one must either insert these track marks manually, or put blank audio files of 3-4 seconds in between each track to cue the recorder to insert a mark itself. In my experience, putting blank audio files between tracks works about 95% of the time. The DG2's automatic track-marking, however, works 100% of the time, and it's less hassle.

Conclusions
With a $59.99 price tag, the DG2 isn't cheap. The inclusion of MusicMatch Jukebox (a $14.99 value) does explain some of the cost, but Jukebox isn't necessary if you already have a favoured set of audio software.

It is worth mentioning that the DG2 can do more than just MiniDisc recording. As far as media players are concerned, the DG2 is a fully-functional digital audio device. Thinking of the DG2 as more of a USB audio product than simply a MiniDisc recording cable eases the pricing pain a little. Still, I wish the DG2 were able to act as full-featured sound card replacement capable of audio output from any application.

At this high price, I expected the DG2 to be perfect, and as a digial Minidisc output port, it was. I can't imagine how the sound quality could have been better, the construction more detailed, or the installation and actual use easier. In these respects, Xitel has a great success with the DG2, as even Sony has recognized. If you want the highest fidelity input for your MiniDisc recorder, the DG2 is it.

It's worth mentioning that Xitel has two new USB audio products coming out at the end of the month. Billed as HiFi-Links, the two new products support RCA and TOSLINK connections, respectively. These will be true USB audio devices, eliminating the DG2's media player limitations. These new products will be more expensive than the DG2. However, they could turn out to be quite compelling options for fans of high-quality sound. We'll keep you posted.