Cubase VST 5.1 has similar dithering options, though the manual doesn't say too much:
"Dithering Type
There are no hard and fast rules for the following options, it all depends on the type of mate-rial
you are processing. We recommend that you experiment and let your ears be the final
judge:
Type 1 Try this first, it is the most “all-round” type.
Type 2 This method emphasizes higher frequencies more than Type 1."
Not very specific, eh? But then in Cubase you hear the dithering in real time and can play with the settings to see what sounds best.
Chris