In the past I have tried to use the "Digg this" code on my blog and it has never worked out for me. If Digg is releasing new options for putting the mighty "Digg this" link on my blog then I am more then willing to give it a try!
You can find all of the information here.
The one that I find easiest to use is this:
Digg is providing options for bloggers that go beyond some as basic as this:
The most customizable of the above options is the Specifying defaults for submission option. Using this code you can specify the URL, Title, Body and Topic of the Digg sumbission. This is great as it avoids the problem of a Digger submitting your content with a lame title or description.
Now comes the next question, do you incorporate this into each blog post or your template?
I can't stress how important it is NOT to add this code to your template. You could add the first code to your template but you would be limitting yourself. It is far better to add the code into the body of your article. Why?
1) You can customize the code to your particular article
2) If you do not want an article on Digg (because it is lame) diggers will have to be real motivated to submit it.
3) It looks very depressing to see a site full of "Digg This" links that have a count in the single digits.
If you feel your post is Digg worthy than, by all means, add the button. I will be experimenting with this feature and adding the code to blog items that have previously been on Digg, but if the Digg count is real low I'll probably not do that :)