the v2 requires a computer connection and the v1 is standalone.
here's a clip from the faq at the mandala site:
- Mandala 1.0 has a brain box with onboard sounds, effects and
presets. - Mandala 2.0 has no brain. It requires a connection via USB
to a computer, laptop or desktop (PC or MAC), and comes with
Synesthesia's proprietary software complete with a sound library of
more than 150 professionally sampled instruments and more than 100
original presets.