HiFiBerry is an addon-board for the Raspberry Pi. It will be connected to the board by USB. You can add it directly or using an external USB cable. To connect it directly to the USB port, the USB jack and the audio and video jacks have to be removed.
The PCB design for the HiFiBerry version 1 is almost finished. Due to the limited space, there will be no SPDIF in and out connection on the board. There is some space left for a pin header for these ports.
The circuit uses an external power regulator to provide the best possible audio quality. The audio chip is a PCM2906 which is known for its good audio quality.