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  <TITLE> Digital Lifestyles Group Inc. (Form: 8-K) </TITLE>
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  		UNITED STATES<BR>
  	SECURITIES AND EXCHANGE COMMISSION
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  	WASHINGTON, D.C. 20549
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  	FORM 8-K
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  	CURRENT REPORT
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  	Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934
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  	Date of Report (Date of Earliest Event Reported):
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  	&nbsp;
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  	July 31, 2007
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  	Digital Lifestyles Group Inc.
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  <BR>__________________________________________<BR>
  	(Exact name of registrant as specified in its charter)
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  	Delaware
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  	000-27828
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  	13-3779546
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  _____________________<BR>
  	(State or other jurisdiction
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  _____________<BR>
  	(Commission
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  ______________<BR>
  	(I.R.S. Employer
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  	of incorporation)
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  	File Number)
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  	Identification No.)
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  	1872 West Avenue, Suite 102, Crossville, Tennessee
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  	38555
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  _________________________________<BR>
  	(Address of principal executive offices)
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  	&nbsp;
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  ___________<BR>
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  	Registrant&#146;s telephone number, including area code:
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  	&nbsp;
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  	(931) 707-9601
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  	Not Applicable
  <BR>______________________________________________<BR>
  	Former name or former address, if changed since last report
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  	&nbsp;
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  <!-- CoverPageRegistrant END --><P><FONT SIZE="2">
  Check the appropriate box below if the Form 8-K filing is intended to
  simultaneously satisfy the filing obligation of the registrant under any
  of the following provisions:</FONT>
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  <P><FONT SIZE="2">
  [&nbsp;&nbsp;]&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<br>
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  	Item 1.01 Entry into a Material Definitive Agreement.
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  Amendment to Existing Agreement with Secured Creditor<br><br>As previously disclosed on Form 8-K filed with the SEC on July 10, 2007, Digital Lifestyles Group, Inc., or the Company, agreed to amend the letter agreement (the "First Amendment") with Laurus Master Fund, Ltd. ("Agreement"), or Laurus, the Company's secured creditor on June 26, 2007.  Under the terms of the original letter agreement (the "Agreement") between the Company and Laurus, as previously disclosed on Form 8-K filed with the SEC on April 26, 2007, the Company agreed to make payment of $200,000 in cash and issue a warrant to purchase one million shares of the Company&#x2019;s common stock at $0.40 in consideration for the extinguishment of the balance of the $2.1 million in outstanding debt.  The Company paid $50,000 in cash at the execution of the Agreement, and initially had until August 1, 2007 to pay the remaining $150,000 cash obligation.  The Company had also agreed to amend the exercise price of a previously issued warrant to Laurus from $0.44 to $0.40.  Under the terms of the First Amendment effective as of June 26, 2007, Laurus and the Company agreed to allow the Company to immediately pay $50,000 of the remaining $150,000 cash obligation at that time and extending the time due for the remaining $100,000 owed until September 14, 2007.   <br><br>On July 31, 2007, the Company and Laurus agreed to amend the payment terms of the First Amendment by allowing the Company to make a payment of $25,000 of the remaining $100,000 owed to Laurus on August 1, 2007, and agreeing to a payment schedule that allows the Company to pay another $25,000 on or by September 1, 2007, another $25,000 on or by October 1, 2007 and the final $25,000 on or by November 1, 2007.<br><br>Debt Settlement with Former Chairman and Chief Executive Officer<br><br>On July 23, 2007 the Company's Board of Directors authorized the Company to execute an agreement (the "Agreement") with the Company&#x2019;s former Chairman and Chief Executive Officer, Andy Teng, whereby the Company would agree to issue 358,000 unregistered shares of common stock to Mr. Teng in complete satisfaction of $179,000 owing to Mr. Teng for earned but unpaid salary and expenses pursuant to the employment agreement entered into on or about August 10, 2005 between the Company and Mr. Teng, as well as for loans Mr. Teng made to the Company during his tenure to fund the Company&#x2019;s operations and efforts to settle its debts with its creditors.  The issuance of 358,000 shares represents the settlement of the debt equivalent at a price per share of $0.50.  On July 31, 2007 the Company and Mr. Teng executed the Agreement.   <br>
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  	Item 3.02 Unregistered Sales of Equity Securities.
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  Conversion of Debt to Equity<br><br>Reference is made to the disclosure provided in response to Item 1.01 of this Form 8-K regarding the letter agreement which provides for issuance of shares of common stock to the Company&#x2019;s former Chairman and Chief Executive Officer in exchange for extinguishment of certain debt, which such disclosure is incorporated herein by this reference.  <br>
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  	SIGNATURES
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  	Pursuant to the requirements of the Securities Exchange Act of 1934, the
  	registrant has duly caused this report to be signed on its behalf by the
  	undersigned hereunto duly authorized.
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  	Digital Lifestyles Group Inc.
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  	&nbsp;&nbsp;
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  <I>
  	August 6, 2007
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  	By:
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  <I>
  	/s/ L.E. Smith
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  	Name: L.E. Smith
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  	Title: Chairman and C.E.O.
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metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "htm_21891.htm", "description": "LIVE FILING", "secsgml_size_bytes": 11516}]
metadata_filer: {"company-data": {"conformed-name": "DIGITAL LIFESTYLES GROUP INC", "cik": "0000942650", "assigned-sic": "3571", "irs-number": "133779546", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-27828", "film-number": "071027352"}, "business-address": {"street1": "1872 WEST AVENUE", "street2": "SUITE 102", "city": "CROSSVILLE", "state": "TN", "zip": "38555", "phone": "9317079601"}, "mail-address": {"street1": "1872 WEST AVENUE", "street2": "SUITE 102", "city": "CROSSVILLE", "state": "TN", "zip": "38555"}, "former-company": [{"former-conformed-name": "NORTHGATE INNOVATIONS  INC", "date-changed": "20020401"}, {"former-conformed-name": "MCGLEN INTERNET GROUP INC", "date-changed": "20000417"}, {"former-conformed-name": "ADRENALIN INTERACTIVE INC", "date-changed": "19980603"}]}
text: Digital Lifestyles Group Inc. (Form: 8-K)
  UNITED STATES
  SECURITIES AND EXCHANGE COMMISSION
  WASHINGTON, D.C. 20549
  FORM 8-K
  CURRENT REPORT
  Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
  Date of Report (Date of Earliest Event Reported):
  July 31, 2007
  Digital Lifestyles Group Inc.
  __________________________________________
  (Exact name of registrant as specified in its charter)
  Delaware
  000-27828
  13-3779546
  _____________________
  (State or other jurisdiction
  _____________
  (Commission
  ______________
  (I.R.S. Employer
  of incorporation)
  File Number)
  Identification No.)
  1872 West Avenue, Suite 102, Crossville, Tennessee
  38555
  _________________________________
  (Address of principal executive offices)
  ___________
  (Zip Code)
  Registrant's telephone number, including area code:
  (931) 707-9601
  Not Applicable
  ______________________________________________
  Former name or former address, if changed since last report
  Check the appropriate box below if the Form 8-K filing is intended to
  simultaneously satisfy the filing obligation of the registrant under any
  of the following provisions:
  [  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
  [  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
  [  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
  [  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
  Top of the Form
  Item 1.01 Entry into a Material Definitive Agreement.
  Amendment to Existing Agreement with Secured Creditor
  As previously disclosed on Form 8-K filed with the SEC on July 10, 2007, Digital Lifestyles Group, Inc., or the Company, agreed to amend the letter agreement (the "First Amendment") with Laurus Master Fund, Ltd. ("Agreement"), or Laurus, the Company's secured creditor on June 26, 2007.  Under the terms of the original letter agreement (the "Agreement") between the Company and Laurus, as previously disclosed on Form 8-K filed with the SEC on April 26, 2007, the Company agreed to make payment of $200,000 in cash and issue a warrant to purchase one million shares of the Company's common stock at $0.40 in consideration for the extinguishment of the balance of the $2.1 million in outstanding debt.  The Company paid $50,000 in cash at the execution of the Agreement, and initially had until August 1, 2007 to pay the remaining $150,000 cash obligation.  The Company had also agreed to amend the exercise price of a previously issued warrant to Laurus from $0.44 to $0.40.  Under the terms of the First Amendment effective as of June 26, 2007, Laurus and the Company agreed to allow the Company to immediately pay $50,000 of the remaining $150,000 cash obligation at that time and extending the time due for the remaining $100,000 owed until September 14, 2007.
  On July 31, 2007, the Company and Laurus agreed to amend the payment terms of the First Amendment by allowing the Company to make a payment of $25,000 of the remaining $100,000 owed to Laurus on August 1, 2007, and agreeing to a payment schedule that allows the Company to pay another $25,000 on or by September 1, 2007, another $25,000 on or by October 1, 2007 and the final $25,000 on or by November 1, 2007.
  Debt Settlement with Former Chairman and Chief Executive Officer
  On July 23, 2007 the Company's Board of Directors authorized the Company to execute an agreement (the "Agreement") with the Company's former Chairman and Chief Executive Officer, Andy Teng, whereby the Company would agree to issue 358,000 unregistered shares of common stock to Mr. Teng in complete satisfaction of $179,000 owing to Mr. Teng for earned but unpaid salary and expenses pursuant to the employment agreement entered into on or about August 10, 2005 between the Company and Mr. Teng, as well as for loans Mr. Teng made to the Company during his tenure to fund the Company's operations and efforts to settle its debts with its creditors.  The issuance of 358,000 shares represents the settlement of the debt equivalent at a price per share of $0.50.  On July 31, 2007 the Company and Mr. Teng executed the Agreement.
  Item 3.02 Unregistered Sales of Equity Securities.
  Conversion of Debt to Equity
  Reference is made to the disclosure provided in response to Item 1.01 of this Form 8-K regarding the letter agreement which provides for issuance of shares of common stock to the Company's former Chairman and Chief Executive Officer in exchange for extinguishment of certain debt, which such disclosure is incorporated herein by this reference.
  Top of the Form
  SIGNATURES
  Pursuant to the requirements of the Securities Exchange Act of 1934, the
  	registrant has duly caused this report to be signed on its behalf by the
  	undersigned hereunto duly authorized.
  Digital Lifestyles Group Inc.
  August 6, 2007
  By:
  /s/ L.E. Smith
  Name: L.E. Smith
  Title: Chairman and C.E.O.