Can someone please explain

If the WD TV Live will do all the things I think it can.

Does it play internet radio without me having to use the computer? (I have a wireless network)

Does it have digital sound out so I can connect it to an external DAC?

Thanks in advance for any answers.

I should add I wanted to connect it to an external DAC so I can play the sound through my amplifier and throw away my CD player.

The only internet radio you can play is from Live365 and then you have to pay a subscription or just listen to 10 random stations.

The unit has a TOSLINK optical digital output. There is a online manual at the WD site.

It has HDMI and Optical outputs that you can use to feed your amp’s etc. to listen to your media files.  So throw away your CD player (and your DVD player!) – I donated mine already!

The WDTV Live has built in access to Pandora & LIve365.  I had never used Pandora until I got my WDL and now I am hooked on it.  You set up an account on your PC, set up a very easy music preference, then forget the PC and liste direct from the WD Live.  Pandora gives (I believe 40 hours of free music per month) or you can subscribe for $36/year.

The WDTV Live also supports YouTube direct/native.

There is no other native “browser” for you to access generic music streaming, however, there are 3rd Party products that you run on an always-on PC to host up streaming services.  Play-On for example will host up your Netflix instant queue to play on the WD TV Live – but that has a fee/subscription for the service (after a free trial).  I don’t use it enough to make it worth the purchase.

The amount of extras you get with WDTV depends on where you live in the world.

 You can only get Pandora if you live in the USA plus if you use Play-on you will not get all of the services (eg. Hulu and Netflix) if you live outside of the USA.