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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.
You can organize your tracks in folders by moving tracks into folder tracks. This allows you to perform editing on several tracks as one entity. Folder tracks can contain any type of track including other folder tracks. Handling Overlapping Audio The basic rule for audio tracks is that each track can only play back a single audio event at a time.