Curiosity got the best of me and I picked one up at a local computer fair. I have always been looking for an alternative to my laptop's on-board sound (which distorts way too much).
Testing it out with my PX-100, I'm happy to say there is no distortion audible and the coloration on the low-end is not terribly bad (more like 'warmish' sound). If it was not mentioned here, I probably would not have paid it any heed. SQ-wise, I don't find it that ground-breaking. The AudioTrak Prodigy and even the A2 ZS are better. No contest. But it's not really fair to compare it with soundcards that cost 5-8x more. The unit picks up some crackles though when there is disc activity -let's see if it goes away after further use (aka burn-in) or if I use a USB extension cable on it (maybe later..)-.
I'm quite happy with it. It is more usable than the headphone out of my laptop. It has reasonably acceptable SQ. It is also easily carried around. And it is dirt-cheap!
edit: The crackles are gone when I used a USB extension cable. It was a good idea to plug the USB adapter further away from the laptop internals and DC input jack (most likely culprit for the crackles and which is directly situated beside the USB ports).
edit 2: I tried plugging the dongle directly to the laptop again and funnily enough, the crackles are no longer there. Either there was indeed a burn-in period required (30 minutes in my case) or I did not plug it in correctly earlier (I'm leaning towards this). All is well anyway.
edit 3: You're welcome, webbie64.