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Tao Qu has consistently been excellent with his offerings, and this is another hit. The DE321 is based on the Silicon Labs Si4835 radio-on-a-chip. This newer Silicon Labs offering is an analog-tuned DSP radio, allowing for a pretty high performance radio (compared to other low-cost analog-tuned portables) with very few components, at a very low cost. I have been pleased with the performance, and the audio quality for what I paid.
Rather than launch into a full revue, I am going to recommend you head over to The SWLing Post for Thomas' great review of the 321. I may revue the 321 at a later date in a comparison with some other radios I have. Until then please enjoy Thomas' excellent website.