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This is the Audio Device Graph Isolation service, a part of Vista and 7's audio services. The real audiodg.exe is harmless, but like any file it could be infected. If it's not doing anything, it should be fine. The worst that can happen by ending it is your audio goes out, restarting your computer would fix that.
Ethernet Audio also connects to popular computer workstations, and provides a fast way to distribute. production audio throughout a broadcast facility. The Scaleable Audio Network. The Ethernet Audio concept makes audio networking a practical reality for systems of every size.