DiggTop is an Adobe Air desktop app that scrapes and displays the images and videos from the Digg stories that you choose to track. After installing DiggTop you customize which categories you want to follow for News, Videos and Images. You can then view a slideshow of the images related to the stories you're reading.
As for videos, DiggTop does a similar thing. You can change which topics you want to follow for video and they will appear in the app's player which does a good job of handling video.
At any time, you can launch a browser session and go to any particular story on Digg by double-clicking it. This comes in handy whenever you want access to the Digg service. However, the app can provide most of the day to day features of Digg such as reading and digging stories.