Well, here's what I have done:
1. Bounced the 24bit 88.2k file down with the TC limiter on but not set to dither. The TC is hardly working btw, really just bringing the level up and shaving off a couple of db from the peaks.
2. Bounced the same 24bit 88.2k file straight to 16bit 44,1 using the TC as above but this time with dither. Pro Tools doing the SRC.
3. Bounced the same 24bit 88.2k file to 24bit 44.1k without dither. Then opened a new file and imported this and bounced it to 16bit using the same TC settings as in number 2. above.
So, now I'm going to use Sample Manager to SRC and dither the file from number 1. above.
Also, since there is a 24bit 44.1k file I might as well throw that one at Sample Manager to dither it to 16bit. This will give us a total of four files to choose from.
I have burned a cd of all four using Waveburner. Even though this is acoustic music with lots of tails and decays, I know it's going to be hard to pick one of these as "better" then the rest so I'll leave it till the morning when the ears will hopefully be fresher. My gut feeling at this stage is that NOT doing the SRC and the dither in the same pass is probably the way to go.