Hi Jeremy,
As Bob has mentioned, SDI supports video with embedded audio. This is neat because you just connect one SDI cable to your deck for output and another one for input. The other ends of the cable go to the DeckLink card. This is nice because DeckLink HD keeps the audio and video together whereas some older SDI cards split the audio and video and this was a common source of problems.
The SPDIF output is simply the digital audio de-embedded from the SDI output of the DeckLink card and this can be useful for monitoring audio.
Capturing via SDI will be a good idea if you want to edit, render and apply effects to uncompressed video to avoid generational loss of quality. If you simply want to capture your DV and output it to a DVD, then capturing via Firewire will be fine and you would not need the DeckLink card. DeckLink cards also enable you to monitor your video on an external monitor and this can be useful after you have captured DVCPRO HD via Firewire with Final Cut Pro HD.
Regards,
Luke Maslen
Blackmagic Design