I would first SRC from 48 to 44.1 using the best conversion available to you. Then run the 24bit 44.1K through the l1 and dither there.

ditto

Great, what about final bit reduction for cd. To dither or not to dither, that is the question. HaHa.
If I have allready added noise shaping at 24 bit do I need to do it again whin I reduce the word length to 16

only apply dithering (and noise shaping if desired) WHILE reducing wordlength from 24bit to 16bit...

so you put the L1 in as last in your chain, and bounce or record to a 16bit file...

anytime you change something or process something, you should be dithering. Even if you have a 16 bit file and you move the fader up or down .1db, it becomes a 24 bit file and must be dithered to 16 bit if your going to use it for CD or you'll be truncating it. Same goes for 24 bit files. most internal processing is larger than 24 bit and should be dithered down to 24 bit after any processing. noise shaping is up to you.

Thats a bit confusing guys. Two different takes on the subject. Im at a crossroads here. I went ahead and did 2 of the tracks with the L1 at 24 bit and they sound great. I just want to reduce to 16 bit without loosing this great sound. Helpppppp :? :D

Not confusing at all. We are all saying the same thing. just select 16 bit output on the L1, choose your dither type by ear and your done.